CENVAT credit amendments impose duty recovery on capital goods cleared as scrap and clarify denial of credit for exempted outputs. A new sub rule obliges manufacturers clearing capital goods as waste or scrap to pay duty equal to the transaction value; references in recovery provisions are updated to include this sub rule. The scope of credit is expanded to cover inputs used for manufacture of intermediate goods necessary for final products, administrative authority is delegated to Deputy or Assistant Commissioners, the fuel exception in a provision is removed, and an explanation clarifies that credit is not allowed for inputs or input services used exclusively for manufacture of exempted goods or services.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
CENVAT credit amendments impose duty recovery on capital goods cleared as scrap and clarify denial of credit for exempted outputs.
A new sub rule obliges manufacturers clearing capital goods as waste or scrap to pay duty equal to the transaction value; references in recovery provisions are updated to include this sub rule. The scope of credit is expanded to cover inputs used for manufacture of intermediate goods necessary for final products, administrative authority is delegated to Deputy or Assistant Commissioners, the fuel exception in a provision is removed, and an explanation clarifies that credit is not allowed for inputs or input services used exclusively for manufacture of exempted goods or services.
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