Changes in CCR (Rule 6(3)

[Srivatsan Krishnamachari]

Dear Experts,

Can you please provide me the changes taken place in Finance Act 2010 related to CCR Rule6(3) retrospectively (maintenance of separate books).

Thanks & Regards

Srinivas

[KASTURI SETHI]

Srivatsan Krishnamachari Ji,

A relevant extract from Finance Bill, 2010 enacted on 8.5.10

(2) The Central Excise Rules, 1944, the Cenvat Credit Rules, 2000, the Cenvat Credit Rules, 2001, the Cenvat Credit Rules, 2002 and the Cenvat Credit Rules, 2004 are being amended retrospectively w.e.f. 1-9-1996 to 31-3-2008 (for periods as applicable to respective rules) to provide that where a manufacturer avails Modvat/Cenvat credit in respect of any inputs, other than fuel, to manufacture both dutiable and exempted goods, he can opt to reverse credit or pay an amount equivalent to credit attributable to inputs used for manufacture of exempted goods. It is being further provided that such manufacturer shall pay interest @ 24% p.a. from the date of clearance till date of reversal of the said credit or payment of equivalent amount. Such option will, however, be available only in such cases where disputes in this regard are pending on the date of enactment. This change will come into effect on the enactment of Finance Bill, 2010.

Will it serve your purpose ?

[Srivatsan Krishnamachari]

Dear Kasturi Ji,

Thank you very much, this will serve my purpose.

Regards

Srinivas

AI Summary

Retrospective Changes to CCR Rule 6(3) Under Finance Act 2010: Key Amendments for Manufacturers and Credit Reversal (3) An individual inquired about retrospective changes to CCR Rule 6(3) under the Finance Act 2010, specifically regarding the maintenance of separate books. An expert responded by outlining that amendments were made to various Cenvat Credit Rules retrospectively from September 1, 1996, to March 31, 2008. These amendments allow manufacturers to either reverse credit or pay an amount equivalent to the credit for inputs used in exempted goods, with a 24% annual interest from clearance to reversal. This option applies only to pending disputes as of the enactment date. The inquirer confirmed the response was helpful.