Small Scale Industries (SSI) and Small Service Providers (SSP) - Transitional provision - Claiming the benefit of exemption after availing the Cenvat Credit

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....id on inputs lying in stock or in process 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. Rule 11(3) - Reversal of Cenvat Credit in case of a Manufacture avails Exemption from whole of duty after availing the Cenvat Credit Rule 11(4) - Reversal of Cenvat Credit in case of a Service Provider avails Exemption from whole of service tax after availing the Cenvat Credit ====================== Part A: - Small Scale Industries (SSI) - Excise A unit who choose to avail SSI Exemption A special provision (transitional provision) has been inserted in the Cenvat Credit Rules as rule 11(2) for the un....

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.... manufacturer or producer of the finished goods, who was availing exemption earlier and intends to pay excise duty, has to follow the prescribe procedure to avail Cenvat Credit on the input lying in stock: Prepare an inventory of duty paid inputs lying in the stock or in processes or inputs contained in the final products lying in the stock along with the Cenvat Credit involved therein. On the basis of such detail, he can avail the Cenvat Credit equal to amount of duty involved in the inputs lying in the stock. For this purpose he is required to proper documentary evidence and records. Further, for this purpose, there is no requirement to submit any declaration or intimation or to obtain permission to or from the department. Further, th....

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....e lying in the Cenvat Credit at the time of opting out from the Cenvat Credit shall neither be refundable nor be adjustable. Good on which Cenvat credit has been availed lying in stock. It may happen that at the time of opting out there may be some stock of input lying in the stock room or in the process and on which Cenvat Credit has been availed. In such cases, such unit should prepare an inventory of all the goods lying in the stock involving input on which Cenvat Credit has been availed along with the details of amount of Cenvat Credit availed. After, preparation of such inventory and detail of credit, an amount equal to such credit shall be reversed. If there is insufficient balance in the Cenvat Credit account, then the balance sha....