Reversal of cenvat credit under rule 6 of CCR 2004

[VINOD KUMAR]

Dear Experts,Good afternoon.Sir Rule 6 of CCR 2004 says:-'(6) The provisions of sub-rules (1), (2), (3) and (4) shall not be applicable in case the excisable goods removed without payment of duty are either-(vii) all goods which are exempt from the duties of customs leviable under the First Schedule to the Customs Tariff Act, 1975 (51 of 1975) and the additional duty leviable under sub-section (1) of section 3 of the said Customs Tariff Act when imported into India and are supplied, (a) against International Competitive Bidding; or (b) to a power project from which power supply has been tied up through tariff based competitive bidding; or (c) to a power project awarded to a developer through tariff based competitive bidding, in terms of 12/2012-Central Excise, dated the 17th March, 2012]]'.Now, the query is:-1. Whether this benefit is available to an Indian manufacturer who supplies his own manufactured goods (without importation) against ICB. My Range Officer Says that this benefit is available only for items those have been imported (emphasis supplied on 'When imported into India').2. whether this benefit is available to all the manufacturers who supplies the goods to a specified Mega Power Project. In my opinion, this benefit is available only to project imports (Tariff heading 9801) by virtue of Sl. No. 507 of Notf No. 12/2012-Cus. I could not find any other notification which grants exemption of BCD and CVD to the supply to Mega Power Project.

AI Summary

Clarification on Duty Exemptions under Rule 6 CCR 2004 for ICB Supplies and Mega Power Projects A participant in a forum raised questions regarding the applicability of duty exemptions under Rule 6 of the Cenvat Credit Rules (CCR) 2004 for goods supplied against International Competitive Bidding (ICB) and to specified Mega Power Projects. The first respondent clarified that goods manufactured in India and supplied under certain conditions are exempt from duty, and there is no need to reverse Cenvat credit for such supplies. The second respondent emphasized that duty exemption is subject to specific conditions under the relevant notification serial numbers, particularly for supplies to Mega Power Projects.