TMI BlogConditions for allowing CENVAT creditX X X X Extracts X X X X X X X X Extracts X X X X ..... vider of output service when the inputs are delivered to such provider, subject to maintenance of documentary evidence of delivery and location of the inputs.] 10 [ Provided also that the manufacturer or the provider of output service shall not take CENVAT credit after 14 [one year] of the date of issue of any of the documents specified in sub- rule (1) of rule 9.] (2) (a) The CENVAT credit in respect of capital goods received in a factory or in the premises of the provider of output service 4 [or outside the factory of the manufacturer of the final products for generation of electricity for captive use within the factory] 15 [or in the premises of the job worker, in case capital goods are sent directly to the job worker on the direction of the manufacturer or the provider of output service, as the case may be,] at any point of time in a given financial year shall be taken only for an amount not exceeding fifty per cent. of the duty paid on such capital goods in the same financial year: Provided that the CENVAT credit in respect of capital goods shall be allowed for the whole amount of the duty paid on such capital goods in the same financial year if suc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ubsequent years. Illustration.- A manufacturer received machinery on the 16th day of April, 2002 in his factory. CENVAT of two lakh rupees is paid on this machinery. The manufacturer can take credit upto a maximum of one lakh rupees in the financial year 2002-2003, and the balance in subsequent years.. (3) The CENVAT credit in respect of the capital goods shall be allowed to a manufacturer, provider of output service even if the capital goods are acquired by him on lease, hire purchase or loan agreement, from a financing company. (4) The CENVAT credit in respect of capital goods shall not be allowed in respect of that part of the value of capital goods which represents the amount of duty on such capital goods, which the manufacturer or provider of output service claims as depreciation under section 32 of the Income-tax Act, 1961( 43 of 1961). (5) 16 [ (a) (i) The CENVAT credit on inputs shall be allowed even if any inputs as such or after being partially processed are sent to a job worker and from there subsequently sent to another job worker and likewise, for further processing, testing, repairing, re-conditioning or for the manufacture of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t again when the inputs or capital goods, as the case may be, are received back in the factory or in the premises of the provider of output service. ] 21 [ (b) The CENVAT credit shall also be allowed to a manufacturer of final products in respect of jigs, fixtures, moulds and dies or tools falling under Chapter 82 of the First Schedule to the Excise Tariff Act, sent by such manufacturer to, - (i) another manufacturer for the production of goods; or (ii) a job worker for the production of goods on his behalf, according to his specifications: Provided that such credit shall also be allowed where jigs, fixtures, moulds and dies or tools falling under Chapter 82 of the First Schedule to the Excise Tariff Act , are sent by the manufacturer of final products to the premises of another manufacturer or job worker without bringing these to his own premises. ] (6) The Deputy Commissioner of Central Excise or the Assistant Commissioner of Central Excise, as the case may be, having jurisdiction over the factory of the manufacturer of the final products who has sent the input or partially processed inputs outside his factory to a job-worker may, by an or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... provider who has taken credit on such input service, he shall pay an amount equal to the CENVAT credit availed in respect of the amount so refunded or credited: Provided also that CENVAT credit in respect of an invoice, bill or, as the case may be, challan referred to in rule 9, issued before the 1 st day of April, 2011 shall be allowed, on or after the day on which payment is made of the value of input service and the service tax paid or payable as indicated in invoice, bill or, as the case may be, challan referred to in rule 9. 12 [ Provided that the manufacturer or the provider of output service shall not take CENVAT credit after 18 [one year] of the date of issue of any of the documents specified in sub-rule (1) of rule 9. 24 [ except in case of services provided by Government, local authority or any other person, by way of assignment of right to use any natural resource ]] 25 [Provided also that CENVAT Credit of Service Tax paid in a financial year, on the one-time charges payable in full upfront or in instalments, for the service of assignment of the right to use any natural resource by the Government, local authority or any other person, sh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... For the words and figures heading No. 68.02 and sub-heading No. 6801.10 , the words and figures heading 6805, grinding wheels and the like, and parts thereof falling under heading 6804 has been substituted vide notification no. 7/2007 CE(NT) dated 21-2-2007 2. Inserted vide notification no. 6/2010 CE(NT) dated 27-2-2010 w.e.f. 1-4-2010 3. Substituted notification no. 6/2010 CE(NT) dated 27-2-2010 w.e.f. 27-2-2010 , before it was read as, (b) The CENVAT credit shall also be allowed in respect of jigs, fixtures, moulds and dies sent by a manufacturer of final products to a job worker for the production of goods on his behalf and according to his specifications 4. Inserted vide notification no. 3/2011 CE(NT) dated 1.3.2011 w.e.f. 1.4.2011 5. Inserted vide notification no. 3/2011 CE(NT) dated 1.3.2011 w.e.f. 1.4.2011 6. Substituted vide notification no. 9/2011 CE(NT) dated 24.3.2011 , before it was read as, jewellery falling under heading 7113 7. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... charge by the recipient of the service, the CENVAT credit in respect of such input service shall be allowed on or after the day on which payment is made of the value of input service and the service tax paid or payable as indicated in invoice, bill or, as the case may be, challan referred to in rule 9: Provided further that in case the payment of the value of input service and the service tax paid or payable as indicated in the invoice, bill or, as the case may be, challan referred to in rule 9 , is not made within three months of the date of the invoice, bill or, as the case may be, challan, the manufacturer or the service provider who has taken credit on such input service, shall pay an amount equal to the CENVAT credit availed on such input service and in case the said payment is made, the manufacturer or output service provider, as the case may be, shall be entitled to take the credit of the amount equivalent to the CENVAT credit paid earlier subject to the other provisions of these rules: 12. Inserted vide Notification No. 21/2014-Central Excise (N.T.) dated 11th July, 2014 w.e.f. first day of September, 2014 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ervice tax paid or payable as indicated in invoice, bill or, as the case may be, challan referred to in rule 9: Provided also that in case the payment of the value of input service and the service tax paid or payable as indicated in the invoice, bill or, as the case may be, challan referred to in rule 9, except in respect of input service where the whole of the service tax is liable to be paid by the recipient of service, is not made within three months of the date of the invoice, bill or, as the case may be, challan, the manufacturer or the service provider who has taken credit on such input service, shall pay an amount equal to the CENVAT credit availed on such input service and in case the said payment is made, the manufacturer or output service provider, as the case may be, shall be entitled to take the credit of the amount equivalent to the CENVAT credit paid earlier subject to the other provisions of these rules ] 18. Substituted vide Central Excise - CE (NT) - 06/2015 - 01-03-2015 w.e.f. 1st day of April, 2015, before it was read as, six months 19. Substituted vide Central E ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed also that where the manufacturer of goods or provider of output service, as the case may be, further assigns such right to use assigned to him by the Government or any other person, in any financial year, to another person against a consideration, such amount of balance CENVAT credit as does not exceed the service tax payable on the consideration charged by him for such further assignment, shall be allowed in the same financial year: Provided also that CENVAT credit of annual or monthly user charges payable in respect of any service by way of assignment of right to use natural resources shall be allowed in the same financial year in which they are paid.] 26. Substituted vide Not. 36/2016 - Dated 26-7-2016 , before it was read as, (i) an assessee engaged in the manufacture of articles of jewellery, other than articles of silver jewellery but inclusive of articles of silver jewellery studded with diamond, ruby, emerald or sapphire, falling under chapter heading 7113 of the First Schedule of the Excise Tariff Act, shall be eligible, if his aggregate value of clearances of all excisable goods for home consumption in the p ..... X X X X Extracts X X X X X X X X Extracts X X X X
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