about the rule in the central excise rules,2004

[MEHUL ASHAR]

Respected sir,

                          Which is the rule no. in the central Excise Rules,2004 which says that we can take 100% addl.duty of imported machinery charged at 4%, in the same year.

[Mahir S]

Mehulji,

Please refer to Cenvat Credit Rule, 2004 for any clarification relating to Cenvat matters.

W.r.t your qeery, rule 4 (2) (a) of Cenvat Credit Rule, 2004 shall be appllicable as detailed bdlow :

4. Conditions for allowing CENVAT credit.-

(2) (a) The CENVAT credit in respect of capital goods received in a factory or in the premises of the provider of output service ⁴[or outside the factory of the manufacturer of the final products for generation of electricity for captive use within the factory] at any point of time in a given financial year shall be taken only for an amount not exceeding fifty per cent. of the duty paid on such capital goods in the same financial year:

     Provided that the CENVAT credit in respect of capital goods shall be allowed for the whole amount of the duty paid on such capital goods in the same financial year if such capital goods are cleared as such in the same financial year.

     Provided further that the CENVAT credit of the additional duty leviable under sub-section (5) of section 3 of the Customs Tariff Act, in respect of capital goods shall be allowed immediately on receipt of the capital goods in the factory of a manufacturer.

AI Summary

CENVAT credit of additional duty on imported capital goods may be claimed immediately on receipt; otherwise credit is prorated within the year. Rule 4(2)(a) of the Cenvat Credit Rules, 2004 limits CENVAT credit on capital goods in a financial year to fifty percent of duty paid, with a proviso allowing full credit if the goods are cleared as such in the same year; a further proviso permits immediate CENVAT credit for the additional duty under the Customs Tariff Act on receipt of the capital goods in the factory.