Reversal of Cenvat Credit supply made under Notification N.33/2012-CE dated 09.07.2012 against SHIS DUTY CREDIT SCRIP

[SHAHID HASHMI]

Please advice whether reversal of cenvat credit in terms of Rule 6 (3) of Cenvat Credit Rules 2002 are applicable in respect of clearances made without payment of Central Excise Duty under Notification No.33/2012-CE dated 09.07.2012 against Status Hoder Incentive Scheme Duty Credit Scrip.

[YAGAY andSUN]

Dear Shahid,

We hope that following judgment will be helpful to you. Though, it is regarding SFIS not pertaining to SHIS, as contention remains the same.

2013 (4) TMI 303 - GUJARAT HIGH COURT

Regards

YAGAY and SUN

(Management and Indirect Tax Consultants)

[SANTOSH SHARMA]

Dear Mr. Shahid,

The said issue was raised by field formations across the country. The Board has clarified this matter by issuing a circular No. 973/07/2013-CE Dated 04/09/2013 that duty debited under SHIS scrips and some other scrips like FMS, FPS etc wil be treated as goods as payment of duty and Rule 6 of CCR, 2004 will nor apply.

Hope this matter is clear once and for all..

Regards,

SANTOSH SHARMA

 

[Mahir S]

Yes, no such reversal is required .

AI Summary

Cenvat Credit Reversal Not Required Under Rule 6(3) for Duty Paid via SHIS Scrips, per Board Circular A discussion on the applicability of Cenvat Credit reversal under Rule 6(3) of the Cenvat Credit Rules 2002 for clearances made without Central Excise Duty payment under Notification No. 33/2012-CE against the Status Holder Incentive Scheme Duty Credit Scrip. One participant referenced a Gujarat High Court judgment, while another cited a Board circular clarifying that duty debited under SHIS and similar scrips is considered as payment of duty, thus Rule 6 does not apply. A third participant confirmed that no reversal is required.