[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. 6/2015-Central Excise (N.T.)
New Delhi, the 1
st
March, 2015
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 (Amendment) Rules, 2015.
(2) Save as otherwise provided in these rules, they shall come into force on the 1
st
day of
March, 2015.
2. In the CENVAT Credit Rules, 2004 (hereinafter referred to as the said rules), in rule 4, –
(a) in sub-rule (1), –
(i) after the words “the provider of output service” , occurring at the end and
before the first proviso, the words “or in the premises of the job worker, in
case 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,” shall be
inserted;
(ii) in the third proviso, for the words “six months”, the words “one year” shall be
substituted;
(b) in sub-rule (2), in clause (a), after the words “for captive use within the
factory,” the words “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,” shall be inserted;
(c) in sub-rule (5), for clause (a), the following clause shall be substituted,
namely: –
“(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
intermediate goods necessary for the manufacture of final products or any
other purpose, and it is established from the records, challans or memos or any
other document produced by the manufacturer or the provider of output
service taking the CENVAT credit that the inputs or the products produced
therefrom are received back by the manufacturer or the provider of output
service, as the case may be, within one hundred and eighty days of their being
sent from the factory or premises of the provider of output service, as the case
may be:
Provided that credit shall also be allowed even if any inputs are
directly sent to a job worker without their being first brought to the premises
of the manufacturer or the provider of output service, as the case may be, and
in such a case, the period of one hundred and eighty days shall be counted
from the date of receipt of the inputs by the job worker;
(ii) the CENVAT credit on capital goods shall be allowed even if any
capital goods as such are sent to a job worker for further processing, testing,
repair, re-conditioning or for the manufacture of intermediate goods necessary
for the manufacture of final products or any other purpose, and it is established
from the records, challans or memos or any other document produced by the
manufacturer or the provider of output service taking the CENVAT credit that
the capital goods are received back by the manufacturer or the provider of
output service, as the case may be, within two years of their being so sent:
Provided that credit shall be allowed even if any capital goods are
directly sent to a job worker without their being first brought to the premises
of the manufacturer or the provider of output service, as the case may be, and
in such a case, the period of two years shall be counted from the date of
receipt of the capital goods by the job worker;
(iii) if the inputs or capital goods, as the case may be, are not received
back within the time specified under sub-clause (i) or (ii), as the case may be,
by the manufacturer or the provider of output service, the manufacturer or the
provider of output service shall pay an amount equivalent to the CENVAT
credit attributable to the inputs or capital goods, as the case may be, by
debiting the CENVAT credit or otherwise, but the manufacturer or the
provider of output service may take the CENVAT credit 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.”;
(d) in sub-rule (7), –
(i) for the first, second and third provisos, the following provisos shall be
substituted, with effect from the 1
st
day of April 2015, namely:-
“Provided that in respect of input service where whole or part
of the service tax is liable to be paid by the recipient of service, credit
of service tax payable by the service recipient shall be allowed after
such service tax is paid:”
“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, except an amount equal
to the CENVAT credit of the tax that is paid by the manufacturer or the
service provider as recipient of 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:”;
(ii) in the sixth proviso, for the words “six months”, the words “one year”
shall be substituted;
(iii) in the Explanations I and II, for the words “sub-rule”, the word “rule”
shall be substituted.
3. In the said rules, in rule 5, in Explanation 1, after clause (1), the following clause shall
be inserted, namely:–
“(1A) "export goods" means any goods which are to be taken out of India to a
place outside India.”.
4. In the said rules, in rule 6, in sub-rule (1), after the proviso, the following
Explanations shall be inserted, namely: –
“Explanation 1. – For the purposes of this rule, exempted goods or final products as
defined in clauses (d) and (h) of rule 2 shall include non-excisable goods cleared for a
consideration from the factory.
Explanation 2. – Value of non-excisable goods for the purposes of this rule, shall be
the invoice value and where such invoice value is not available, such value shall be
determined by using reasonable means consistent with the principles of valuation
contained in the Excise Act and the rules made thereunder.”.
5. In the said rules, in rule 9, in sub-rule (4), the following proviso shall be inserted at
the end, namely:–
“Provided that provisions of this sub-rule shall apply mutatis mutandis to an
importer who issues an invoice on which CENVAT credit can be taken.”.
6. In the said rules, in rule 12AAA, –
(a) after the words “restrictions on a manufacturer” , the words “registered importer,”
shall be inserted.
(b) after the words “suspension of registration in case of” , the words “an importer or”
shall be inserted.
7. In the said rules, for rule 14, the following rule shall be substituted, namely:—
“14. Recovery of CENVAT credit wrongly taken or erroneously refunded. –
(1) (i) Where the CENVAT credit has been taken wrongly but not utilised, the same
shall be recovered from the manufacturer or the provider of output service, as
the case may be, and the provisions of section 11A of the Excise Act or section
73 of the Finance Act, 1994 (32 of 1994), as the case may be, shall apply
mutatis mutandis for effecting such recoveries;
(ii) Where the CENVAT credit has been taken and utilised wrongly or has been
erroneously refunded, the same shall be recovered along with interest from the
manufacturer or the provider of output service, as the case may be, and the
provisions of sections 11A and 11AA of the Excise Act or sections 73 and 75 of
the Finance Act, 1994, as the case may be, shall apply mutatis mutandis for
effecting such recoveries.
(2) For the purposes of sub-rule (1), all credits taken during a month shall be deemed
to have been taken on the last day of the month and the utilisation thereof shall be
deemed to have occurred in the following manner, namely: -
(i) the opening balance of the month has been utilised first;
(ii) credit admissible in terms of these rules taken during the month has been
utilised next;
(iii) credit inadmissible in terms of these rules taken during the month has
been utilised thereafter.”.
8. In the said rules, in rule 15, with effect from the date on which the Finance Bill, 2015
receives the assent of the President, –
(a) in sub-rule (1), for the words “not exceeding the duty or service tax on such goods
or services, as the case may be, or two thousand rupees, whichever is greater.”, the
words, brackets, figures and letters “in terms of clause (a) or clause (b) of sub-
section (1) of section 11AC of the Excise Act or sub-section (1) of section 76 of
the Finance Act (32 of 1994), as the case may be” shall be substituted;
(b) in sub-rule (2), for the words, figures and letters “section 11AC of the Excise
Act.” , the words, brackets, figures and letters “clause (c), clause (d) or clause (e)
of sub-section (1) of section 11AC of the Excise Act.” shall be substituted;
(c) in sub-rule (3), for the words and figures “penalty in terms of the provisions of
section 78” , the words brackets and figures “penalty in terms of the provisions of
sub-section (1) of section 78” shall be substituted.
[F. No. 334/5/2015-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), vide notification No. 23/2004 - Central Excise (N.T.) dated the 10
th
September, 2004 vide number G.S.R. 600(E) dated the 10
th
September, 2004 and last
amended vide notification No. 26/2014 - Central Excise (N.T.) dated 27
th
August, 2014
published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), by
number G.S.R. 619 (E), dated the 27
th
August, 2014.
