TaxTMI 
TaxTMI 
Cenvat Credit
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....portance) Act, 1957 ( 58 of 1957) (v) the National Calamity Contingent duty leviable under section 136 of the Finance Act, 2001 (14 of 2001); (vi) the Education Cess on excisable goods leviable under section 91 read with section 93 of the Finance (No.2) Act, 2004 (23 of 2004); [1,2](via) the Secondary and Higher Education Cess on excisable goods leviable under section 136 read with section 138 of the Finance Act, 2007 (22 of 2007); [3] (vii) the additional duty leviable under section 3 of the Customs Tariff Act, equivalent to the duty of excise specified under clauses (i), (ii), (iii), (iv), (v) , (vi) and (via); 40[*********] (viia) the additional duty leviable under sub-section (5) of section 3 of the Customs Tariff Act. Provided that a provider of taxable service shall not be eligible to take credit of such additional duty; (viii) the additional duty of excise leviable under section 157 of the Finance Act, 2003 (32 of 2003); (ix) the service tax leviable under section 66 of the Finance Act; and 29[(ixa) the service tax leviable under section 66Aof the Finance Act; and]. 30[(ixb) the service tax leviable under section 66B of the Finance Act]; (x) the Educa....
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....rocess or inputs contained in the final products lying in stock on the date on which any goods manufactured by the said manufacturer or producer cease to be exempted goods or any goods become excisable. (3) Notwithstanding anything contained in sub-rule (1), in relation to a service which ceases to be an exempted service, the provider of the output service shall be allowed to take CENVAT credit of the duty paid on the inputs received on and after the 10th day of September, 2004 and lying in stock on the date on which any service ceases to be an exempted service and used for providing such service. (4) The CENVAT credit may be utilized for payment of - (a) any duty of excise on any final product; or (b) an amount equal to CENVAT credit taken on inputs if such inputs are removed as such or after being partially processed; or (c) an amount equal to the CENVAT credit taken on capital goods if such capital goods are removed as such; or (d) an amount under sub rule (2) of rule 16 of Central Excise Rules, 2002; or (e) service tax on any output service: Provided that while paying duty of excise or service tax, as the case may be, the CENVAT credit shall be utilized only to th....
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....at the CENVAT credit of any duty specified in sub-rule (1) shall not be utilised for payment of the Swachh Bharat Cess leviable under sub-section (2) of section 119 of the Finance Act, 2015 (20 of 2015):] 18[Provided also that the CENVAT credit of any duty specified in sub-rule (1) shall not be utilized for payment of the Clean Energy Cess leviable under section 83 of the Finance Act, 2010 (14 of 2010)] 43[Provided also that CENVAT credit shall not be utilised for payment of Infrastructure Cess leviable under 44[ sub-section (1) of section 162 of the Finance Act, 2016 ] ] 46[ Provided also that the Cenvat credit of any duty specified in sub-rule (1) shall not be utilised for payment of Krishi Kalyan Cess leviable under section 161 of the Finance Act, 2016 (28 of 2016); ] 30[Explanation. - CENVAT credit cannot be used for payment of service tax in respect of services where the person liable to pay tax is the service recipient.] (5) When inputs or capital goods, on which CENVAT credit has been taken, are removed as such from the factory, or premises of the provider of output service, the manufacturer of the final products or provider of output service, as the case may be, sh....
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....s of these rules.] 35[***] [7] (5C).- Where on any goods manufactured or produced by an assessee, the payment of duty is ordered to be remitted under rule 21 of the Central Excise Rules, 2002, the CENVAT credit taken on the inputs used in the manufacture or production of said goods 36[and the CENVAT credit taken on input services used in or in relation to the manufacture or production of said goods] shall be reversed. 37[Explanation 1 .- The amount payable under sub-rules (5), (5A), (5B) and (5C), unless specified otherwise, shall be paid by the manufacturer of goods or the provider of output service by debiting the CENVAT credit or otherwise on or before the 5th day of the following month except for the month of March, where such payment shall be made on or before the 31st day of the month of March. Explanation 2.- If the manufacturer of goods or the provider of output service fails to pay the amount payable under sub-rules (5), (5A), (5B) and (5C), it shall be recovered, in the manner as provided in rule 14, for recovery of CENVAT credit wrongly taken and utilised.] (6) The amount paid under sub-rule (5) and sub-rule (5A) shall be eligible as CENVAT credit as if it was a du....
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.... (B) the Education Cess leviable under section 91 read with section 93 of the Finance (No. 2) Act, 2004 and the Secondary and Higher Education Cess leviable under section 136 read with section 138 of the Finance Act, 2007, on the excise duty referred to in (A), shall be the aggregate of - (I) that portion of excise duty referred to in (A), as is equivalent to - (i) the additional duty leviable under sub-section (1) of section 3 of the Customs Tariff Act, which is equal to the duty of excise under clause (a) of sub-section (1) of section 3 of the Excise Act; (ii) the additional duty leviable under sub-section (5) of section 3 of the Customs Tariff Act; and (II) the Education Cess and the Secondary and Higher Education Cess referred to in (B)] (b) CENVAT credit in respect of - (i) the additional duty of excise leviable under section 3 of the Additional Duties of Excise (Textiles and Textile Articles) Act, 1978 (40 of 1978); (ii) the National Calamity Contingent duty leviable under section 136 of the Finance Act, 2001 (14 of 2001); (iii) the education cess on excisable goods leviable under section 91 read with section 93 of the Finance (No.2) Act, 2004 (23 of 2004); ....
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....t of the Secondary and Higher Education Cess on excisable goods and the Secondary and Higher Education Cess on taxable services can be utilized, either for payment of the Secondary and Higher Education Cess on excisable goods or for the payment of the Secondary and Higher Education Cess on taxable services. 38[Provided also that the credit of Education Cess and Secondary and Higher Education Cess paid on inputs or capital goods received in the factory of manufacture of final product on or after the 1st day of March, 2015 can be utilized for payment of the duty of excise leviable under the First Schedule to the Excise Tariff Act: Provided also that the credit of balance fifty per cent. Education Cess and Secondary and Higher Education Cess paid on capital goods received in the factory of manufacture of final product in the financial year 2014-15 can be utilized for payment of the duty of excise specified in the First Schedule to the Excise Tariff Act: Provided also that the credit of Education Cess and Secondary and Higher Education Cess paid on input services received by the manufacturer of final product on or after the 1st day of March, 2015 can be utilized for payment of the d....
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.... Act, 2016 (28 of 2016) ] *************** Notes: 1. In sub-rule (1), after clause (vi), clause (via) has been inserted, vide Notification No. 10/2007 CE (NT) dated 1/3/2007 2. Clause (via), has been substituted, by Notification No. 27/2007 CE(NT) dated 12/5/2007, before it was read as the "Secondary and Higher Education Cess on excisable goods leviable under clause (126) read with clause (128) of the Finance Bill, 2007, which by virtue of the declaration made in the said Finance Bill under the Provisional Collection of Taxes Act, 1931 (16 of 1931), has the force of law;") 3. (In clause (vii), for the word, figures and brackets and (vi), the word, figures, brackets and letter , (vi) and (via) has been substituted; vide Notification No. 10/2007 CE (NT) dated 1/3/2007) 4. Clause (xa) has been inserted By Notification No. 27/2007 CE (NT) dated 12/5/2007) 5. Third Proviso has been inserted vide Notification No. 39/2007 CE (NT) dated 13/11/2007), after deletion of second proviso it was read as second proviso. This proviso was further substituted vide notification no. 6/2010 CE(NT) dated 27-2-2010, before substitution it was read as, "Provided also that if the ....
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....being partially processed or on any output service, after the words the education cess on excisable goods leviable under section 91 read with section 93 of the Finance (No.2) Act, 2004, the above has been inserted, namely:- vide Notification No. 10/2007 CE (NT) dated 1/3/2007) (For the proviso, the above provisos has been substituted vide Notification No. 27/2007 CE(NT) dated 12/5/2007) (For the proviso, the above proviso has been substituted, namely:- vide Notification No. 10/2007 CE (NT) dated 1/3/2007) 12. In rule 3, in sub-rule (7), in clause (c), for the words and figures "sub-heading No. 2504.21 or 2504.31 respectively", the words and figures "tariff items 2515 12 20 and 2515 12 90 respectively" has been substituted vide notification no. 7/2007 CE(NT) dated 21-2-2007) 13. In sub-rule (4), after the third proviso, the new proviso has been inserted, with effect from the 1st day of March, 2008 vide notification no. 10/2008 CE(NT) dated 1-3-2008 14. in the first proviso of sub rule 5, after the words "where any inputs", the words " or capital goods" has been inserted with effect from 1-4-2008 vide notification no. 10/2008 CE(NT) dat....
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....012, w.e.f. 17-3-2012, before it was read as, " 5[24[Provided also] that if the capital goods, on which CENVAT Credit has been taken, are removed after being used, the manufacturer or provider of output services shall pay an amount equal to the CENVAT Credit taken on the said capital goods reduced by the percentage points calculated by straight line method as specified below for each quarter of a year or part thereof from the date of taking the CENVAT Credit, namely:- (a) for computers and computer peripherals: for each quarter in the first year @ 10% for each quarter in the second year @ 8% for each quarter in the third year @ 5% for each quarter in the fourth and fifth year @1% (b) for capital goods, other than computers and computer peripherals @ 2.5% for each quarter.] 27. Substituted vide notification no. 18/2012 CE(NT) dated 17-3-2012, w.e.f. 17-3-2012, before it was read as, "(5A) If the capital goods are cleared as waste and scrap, the manufacturer shall pay an amount equal to the duty leviable on transaction value." 28. Substituted vide Notification No.28/2012-Central Excise (N.T), Dated 20/06/2012, before it was read as:- "provider of taxable service" 29. ....