TMI BlogInstructions regarding CENVATX X X X Extracts X X X X X X X X Extracts X X X X ..... additional demand of duty that may be confirmed against the manufacturer of inputs or capital goods. It has also been mentioned that in certain cases provisional assessment is resorted to on account of price escalation clause by way of an agreement between the buyer and the seller. 3. The matter has been examined in all its aspects. It has been decided that if the assessment is provisional, then the CENVAT credit of the additional amount of duty that may be recovered from the buyer may be allowed. For this purpose, it is necessary that the supplementary invoice should be issued by the manufacturer of inputs or capital goods. Such supplementary invoice has also been included in the category of eligible documents for CENVAT credit. 4. It ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , the CENVAT credit is admissible. In the CENVAT scheme also, CENVAT credit can be taken on the inputs on which duty has been paid. Accordingly, once the embargo, which is applicable because of the SSI exemption notification, is lifted, the SSI unit is eligible to take CENVAT credit in respect of inputs lying in stock, on the inputs contained in the finished goods lying in stock and on the inputs in process. This would apply equally to any other assessee (non-SSI) who begins to pay duty in the middle of the year. For this purpose, it is obligatory on the assessee to quantify the amount of admissible credit on the basis of documentary evidence and records maintained for this purpose 6. Some references have been received seeking clarificatio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ise procedure. In such case, the appropriate duty of excise that is payable is 'nil'. Therefore, there is no bar for a manufacturer to remove the inputs or capital goods for export under bond within the Explanation referred to above. 9. Referring to sub-rule (2) (c) of rule 57AC, it has been pointed out that there are cases in which the capital goods were received before 1st day of April, 2000, and also installed before that date. However, the modvat credit on the capital goods was not taken for some reason prior to 1.4.2000. It has been pointed out that in this situation, not being covered under rule 57AC(2) (c), the duty paid on the capital goods causes burden to the manufacturer. It has also been reported that in some cases the inpu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on provision under rule 57AG. 12. Rule 57AC(2)(a) provides for CENVAT credit to the extent of an amount not exceeding 50% of the duty paid on the capital goods in the financial year in which the capital goods are received in the factory. In this context, clarification has been sought for as regards the status of the capital goods or other raw materials, which are classified and imported as project import under heading 98.01 of the Customs Tariff. It is clarified that in respect of capital goods, which are included in the project import, the CENVAT credit shall be admissible only to the extent of an amount not exceeding 50% of the additional duty of customs paid on such capital goods. However, on the other materials, which are not in the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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