TMI BlogSmall Scale Industries (SSI) and Small Service Providers (SSP) - Transitional provision - Claiming the benefit of exemption after availing the Cenvat CreditX X X X Extracts X X X X X X X X Extracts X X X X ..... ake CENVAT credit of the duty paid on inputs lying in stock or in process or inputs contained in the final products lying in stock on the date on which any goods manufactured by the said manufacturer or producer cease to be exempted goods or any goods become excisable. Rule 11(3) - Reversal of Cenvat Credit in case of a Manufacture avails Exemption from whole of duty after availing the Cenvat Credit Rule 11(4) - Reversal of Cenvat Credit in case of a Service Provider avails Exemption from whole of service tax after availing the Cenvat Credit ====================== Part A: - Small Sca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dit shall be reversed. If there is insufficient balance in the Cenvat Credit account, then the balance shall be paid through PLA. A unit who starts paying excise duty after availing exemption A manufacturer or producer of the finished goods, who was availing exemption earlier and intends to pay excise duty, has to follow the prescribe procedure to avail Cenvat Credit on the input lying in stock: Prepare an inventory of duty paid inputs lying in the stock or in processes or inputs contained in the final products lying in the stock along with the Cenvat Credit involved therein. On the basis of such detail, he can avail the Cenvat Credit equal to amount of duty involved in the inputs lying in the stock. For this purpose he is req ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to come out from the service tax net by availing exemption shall not be entitled to use the Cenvat Credit further and all the balance remaining in the account shall lapse except balance on account of Capital Goods. Therefore, the balance lying in the Cenvat Credit at the time of opting out from the Cenvat Credit shall neither be refundable nor be adjustable. Good on which Cenvat credit has been availed lying in stock. It may happen that at the time of opting out there may be some stock of input lying in the stock room or in the process and on which Cenvat Credit has been availed. In such cases, such unit should prepare an inventory of all the goods lying in the stock involving input on which Cenvat Credit has been availed along w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d absolutely under section 5A of the Act - As per Rule 11(3) a manufacturer is required to shall be required to pay an amount equivalent to the CENVAT credit, if any, taken by him in respect of inputs received for use in the manufacture of the said final product and is lying in stock or in process or is contained in the final product lying in stock. - If there remains any balance, the same shall lapse - will not be used for any purpose in future. ====================== Part D:- Special provision in case of Service Provider who opt to avail exemption from whole of service tax under a Notification when he opts for exemption from payment of whole of the service tax leviable on such taxable service under a notific ..... X X X X Extracts X X X X X X X X Extracts X X X X
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