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 and SUN]

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

Reversal of Cenvat Credit not required for clearances under SHIS duty credit scrip per Board clarification.
Reversal of Cenvat credit under the Cenvat Credit Rules does not apply to clearances effected against Status Holder Incentive Scheme duty-credit scrips because the Board treats duty debited under such scrips as payment of duty, and therefore the Cenvat reversal mechanism is not applicable.