Excise
Amendment of rule 6 of CENVAT Credit Rules, 2002.
71. (1) In the CENVAT Credit Rules, 2002, made by the Central Government in exercise of the powers conferred by section 37 of the Central Excise Act, and published in the Official Gazette vide notification of the Government of India in the Ministry of Finance (Department of Revenue) number G.S.R. 144(E), dated the 1st March, 2002, rule 6 shall stand amended and shall be deemed to have been amended retrospectively, in the manner specified in column (3) of the Seventh Schedule, on and from and up to the corresponding date specified in column (4) of that Schedule against the rule specified in column (2) of that Schedule.
(2) Where a person opts to pay the amount in accordance with the provisions as amended by subsection (1), he shall pay the amount along with interest specified thereunder and make an application to the Commissioner of Central Excise along with documentary evidence and a certificate from a Chartered Accountant or a Cost Accountant certifying the amount of input credit attributable to the inputs used in or in relation to the manufacture of exempted goods within a period of six months from the date on which the Finance Bill, 2010 receives the assent of the President.
(3) The Commissioner of Central Excise shall, on receipt of an application under sub-section (2), verify the correctness of the amount paid within a period of two months from the date of receipt of the application and in case the amount so paid is found to be less than the amount payable, he shall call upon the applicant to pay the differential amount along with interest, which shall be paid within a period of ten days from the date of receipt of the communication from the Commissioner in this regard.
(4) Notwithstanding anything contained in any judgment, decree or order of any court, tribunal or other authority, any action taken or anything done or purported to have been taken or done, at any time during the period commencing on and from the 1st day of March, 2002 and ending with the 9th day of September, 2004, relating to the provisions as amended by sub-section (1), shall be deemed to be, and deemed always to have been, for all purposes, as validly and effectively taken or done as if the amendment made by sub-section (1) had been in force at all material times.
(5) Notwithstanding the supersession of the CENVAT Credit Rules, 2002, for the purposes of subsection (1), the Central Government shall have and shall be deemed to have the power to make rules with retrospective effect as if the Central Government had the power to make rules under section 37 of the Central Excise Act, retrospectively, at all material times.
Explanation.—For the removal of doubts, it is hereby declared that no act or omission on the part of any person shall be punishable as an offence which would not have been so punishable had this section not come into force.
Notes on Clauses:
Clause 71 of the Bill seeks to amend rule 6 of the CENVAT Credit Rules, 2002 in the manner specified in column (3) of the Seventh Schedule with retrospective effect, on or from and up to date specified in column (4) thereof, so as to provide for payment by manufacturer of an amount equal to CENVAT credit attributable to inputs used in or in relation to manufacture of exempted goods or goods chargeable to nil rate of duty before or after clearance of such goods along with interest at the rate of twenty-four per cent. per annum. The proposed amendment will apply to cases in respect of which a dispute relating to adjustment of credit on inputs in or in relation to exempted final products relating to the period beginning on the 1st day of March, 2002 to 9th day of September, 2004 (both days inclusive) is pending on the date on which the Finance Bill, 2010 receives the assent of the President.
