Exemption under Notification No 01/2011

[NEERAJ KUMAR, RANCHI]

Dear Sirs,

Any person availing exemption under Notification No. 01/2011-CE i.e. paying duty at 1%, can he shift to Notification No. 02/2011-CE i.e. paying duty @ 5% and availing cenvat credit in the middle of the year, if at the begining he has opted for earlier notification.

AI Summary

Switching from 1% to 5% duty under Notifications 01/2011-CE and 02/2011-CE is allowed if conditions met. A query was raised regarding the possibility of switching from Notification No. 01/2011-CE, which involves paying a 1% duty without availing Cenvat credit, to Notification No. 02/2011-CE, allowing for a 5% duty with Cenvat credit, mid-year. Respondents agreed that switching is permissible if the conditions of the initial notification are not violated, specifically the non-availment of Cenvat credit. It was advised to check updated notifications and maintain proper records to ensure compliance with the eligibility criteria under both notifications.