CENVAT Credit (Third Amendment) Rules, 2014

Last updated: 25 February 2014


[TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB-SECTION (i)]

Government of India

Ministry of Finance

(Department of Revenue)

Notification No. 05/2014 – Central Excise (N.T.)

New Delhi, the 24th February, 2014

G.S.R....(E).­­- In exercise of the powers conferred by section 37 of the Central Excise Act,1944 (1 of 1944) and section 94 of the Finance Act,1994 (32 of 1994),  the Central Government hereby makes the following rules further to amend the CENVAT Credit Rules,2004, namely:-

1.   (1) These rules may be called the CENVAT Credit (Third Amendment) Rules, 2014.

(2) They shall come into force on the 1st day of April, 2014.

2.   In rule 7 of the CENVAT Credit Rules, 2004, ­-

(i)   in clause (b) for the words, “used in a unit”, the words “used by one or more units” shall be substituted;

(ii)  in clause (c) for the words, “used wholly in a unit”, the words “used wholly by a unit” shall be substituted;

(iii) for clause (d), the following clause shall be substituted, namely:-

“(d) credit of service tax attributable to service used by more than one unit shall be distributed pro rata on the basis of the turnover of such units during the relevant period to the total turnover of all its units, which are operational in the current year, during the said relevant period.”;

(iv) for Explanation 3, the following shall be substituted, namely:-

“Explanation 3.- For the purposes of this rule, the ‘relevant period’ shall be,-

(a) If the assessee has turnover in the ‘financial year’ preceding to the year during which credit is to be distributed for month or quarter, as the case may be, the said financial year; or

(b) If the assessee does not have turnover for some or all the units in the preceding financial year, the last quarter for which details of turnover of all the units are available, previous to the month or quarter for which credit is to be distributed.”.

[F.No. 354 /246/ 2013-TRU]

(Akshay Joshi)

Under Secretary to the Government of India

Note.- The principal rules were published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), dated the 10th September,2004, vide  notification No.23/2004 - Central Excise (N.T.) dated the 10th September, 2004 vide number G.S.R. 600(E) dated the 10th September,2004 and last amended vide notification No. 02/2014 - Central Excise (N.T.) dated the 20th Januray,2014 published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 36(E), dated the 20th January,2014.

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