TaxTMI 
TaxTMI 
TRANSITIONAL PROVISIONS UNDER RULE 11 OF CENVAT CREDIT RULES 2004
iS THERE ANY DIFFERENCE BETWEEN RULE 11(2) AND RULE 11(3)(i) OF Cenvat Credit Rules, 2004. BOTH APPEAR TO BE CONVEYING SAME MEANING. IF SO WHY TWO SUBRULES.
transitional provision under cenvat rule11
03 May 2012 
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Cenvat credit transitional rules clarify distinct treatment for SSI value based exemptions and broader section 5A notifications.
Rule 11(2) is a transitional provision applicable to SSI units opting for Cenvat where exemption is value based and concerns lapse or reversal of remaining credit on stock. Rule 11(3)(i), inserted later to cover notifications under section 5A granting other exemptions, requires adjustment measures including payment in cash where Cenvat balance is insufficient, thereby extending transitional relief beyond the SSI/value based context. (AI Summary)
Rule 11(2) is a transitional provision applicable to SSI units opting for Cenvat where exemption is value based and concerns lapse or reversal of remaining credit on stock. Rule 11(3)(i), inserted later to cover notifications under section 5A granting other exemptions, requires adjustment measures including payment in cash where Cenvat balance is insufficient, thereby extending transitional relief beyond the SSI/value based context. (AI Summary)