Payment of amount under Rule 6 of the CENVAT Credit Rules, 2004 - reg.

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....hief Commissioners of Customs & Central Excise, All Chief Commissioners of Central Excise, All Commissioners of Customs & Central Excise, All Commissioners of Central Excise, Sub.: Payment of amount under Rule 6 of the CENVAT Credit Rules, 2004 - reg. Sir /Madam,             The undersigned is directed to refer to circular No....

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.... has been collected as excise duty and not paid to the credit of the Central Government shall be liable to be recovered.  The scheme of the Law is that manufacturers shall not collect amounts falsely representing them as Central Excise duty and retain them, thus, unjustly benefiting themselves.  However, in case of payments made under erstwhile rule 57CC(1),  section 11D of the Act ....

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....xcise Rules, 1944 or rule 6 of the CENVAT Credit Rules, the provisions of section 11D shall not apply even if the amount is recovered from the buyers.   However, it may be noted that the CENVAT credit of the said amount of 8% or 10% cannot be taken by the buyer since such payment is not a payment of duty in terms of rule 3(1) of the CENVAT Credit Rules, 2004. Therefore, the said 10% amou....