Rule 3 - Cenvat Credit - Cenvat Credit Rules, 2004

3. CENVAT credit.- (1) A manufacturer or producer of final products or a 28 [ provider of output service ] shall be allowed to take credit (hereinafter referred to as the CENVAT credit) of - (i) the duty of excise specified in the First Schedule to the Excise Tariff Act, leviable under the Excise Act; 19 [ Provided that CENVAT credit of such duty of excise shall not be allowed to be taken when paid on any goods - (a) in respect of which the benefit of an exemption under notification No.1/2011-CE, dated the 1 st March, 2011 is availed; or (b) specified in serial numbers 67 and 128 in respect of which the benefit of an exemption under Notification No. 12/2012-CE ,dated the 17 th March, 2012 is availed;] (ii) the duty of excise specified in the Second Schedule to the Excise Tariff Act, leviable under the Excise Act; (iii) the additional duty of excise leviable under section 3 of the Additional Duties of Excise (Textile and Textile Articles) Act,1978 ( 40 of 1978); (iv) the additional duty of excise leviable under section 3 of the Additional Duties of Excise (Goods of Special Importance) 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 Education Cess on taxable services leviable under section 91 read with section 95 of the Finance (No.2) Act, 2004 (23 of 2004), [4] (xa) the Secondary and Higher Education Cess on taxable services leviable under section 136 read with section 140 of the Finance Act, 2007 (22 of 2007); and; (xi) the additional duty of excise leviable under section 85 of Finance Act, 2005 (18 of 2005) paid on- (i) any input or capital goods received in the factory of manufacture of final product or 31 [ by ] the provider of output service on or after the 10th day of September, 2004; and (ii) any input service received by the manufacturer of final product or by the provider of output services on or after the 10th day of September, 2004, including the said duties, or tax, or cess paid on any input or input service, as the case may be, used in the manufacture of intermediate products, by a job-worker availing the benefit of exemption specified in the notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 214/86- Central Excise, dated the 25th March, 1986, published in the Gazette of India vide number G.S.R. 547 (E), dated the 25th March, 1986, and received by the manufacturer for use in, or in relation to, the manufacture of final product, on or after the 10th day of September, 2004. [15 ] [ Provided that the CENVAT credit shall be allowed to be taken of the amount equal to central excise duty paid on the capital goods at the time of debonding of the unit in terms of the para 8 of notification No. 22/2003-Central Excise, published in the Gazette of India, part II, Section 3,sub-section(i),vide number G.S.R. 265(E), dated, the 31st March,2003.] Explanation .- For the removal of doubts it is clarified that the manufacturer of the final products and the provider of output service shall be allowed CENVAT credit of additional duty leviable under section 3 of the Customs Tariff Act on goods falling under heading 9801 of the First Schedule to the Customs Tariff Act. 45 [ (1a) A provider of output service shall be allowed to take CENVAT credit of the Krishi Kalyan Cess on taxable services leviable under section 161 of the Finance Act, 2016 (28 of 2016) ; ] (2) Notwithstanding anything contained in sub-rule (1), the manufacturer or producer of final products shall be allowed to take CENVAT credit of the duty paid 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. (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 the extent such credit is available on the last day of the month or quarter, as the case may be, for payment of duty or tax relating to that month or the quarter, as the case may be: 21 [ Provided further that CENVAT credit shall not be utilised for payment of any duty of excise on goods in respect of which the benefit of an exemption under notification No. 1/2011-CE, dated the 1st March, 2011 is availed:] 22 [Provided also] that the CENVAT credit of the duty, or service tax, paid on the inputs, or input services, used in the manufacture of final products cleared after availing of the exemption under the following notifications of Government of India in the Ministry of Finance (Department of Revenue),- (i) No. 32/99-Central Excise, dated the 8th July, 1999 [G.S.R. 508(E), dated 8th July, 1999]; (ii) No. 33/99-Central Excise, dated the 8th July, 1999 [G.S.R. 509(E), dated 8th July, 1999]; (iii) No. 39/2001-Central Excise, dated the 31st July, 2001 [G.S.R. 565 (E), dated the 31st July, 2001]; (iv) No. 56/2002-Central Excise, dated the 14th November, 2002 [G.S.R. 764(E), dated the 14th November 2002]; (v) No. 57/2002-Central Excise, dated 14th November, 2002 [G.S.R.. 765(E), dated the 14th November, 2002]; (vi) No. 56/2003-Central Excise, dated the 25th June, 2003 [G.S.R. 513 (E), dated the 25th June, 2003]; and (vii) No. 71/2003-Central Excise, dated the 9th September, 2003 [G.S.R. 717 (E), dated the 9th September, 2003], shall, respectively, be utilized only for payment of duty on final products, in respect of which exemption under the said respective notifications is availed of. Provided also that no credit of the additional duty leviable under sub-section (5) of section 3 of the Customs Tariff Act, shall be utilised for payment of service tax on any output service: Provided also that the CENVAT credit of any duty mentioned in sub-rule (1), other than credit of additional duty of excise leviable under section 85 of Finance Act, 2005 (18 of 2005 ) shall not be utilised for payment of said additional duty of excise on final products [13] Provided also that the CENVAT credit of any duty specified in sub-rule (1), except the National Calamity Contingent duty in item (v) thereof, shall not be utilized for payment of the 42 [National Calamity Contingent duty leviable under section 136 of the Finance Act, 2001 (14 of 2001)] 41 [Provided also that 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, shall pay an amount equal to the credit availed in respect of such inputs or capital goods and such removal shall be made under the cover of an invoice referred to in rule 9: [14] Provided that such payment shall not be required to be made where any inputs or capital goods are removed outside the premises of the provider of output service for providing the output service: 23 [Provided further that such payment shall not be required to be made where any inputs are removed outside the factory for providing free warranty for final products:] 26 [****] 34 [(5A) (a) 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:- (i) 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% (ii) for capital goods, other than computers and computer peripherals @ 2.5% for each quarter: Provided that if the amount so calculated is less than the amount equal to the duty leviable on transaction value, the amount to be paid shall be equal to the duty leviable on transaction value. (b) If the capital goods are cleared as waste and scrap, the manufacturer shall pay an amount equal to the duty leviable on transaction value.] 6 [(5B) If the value of any, (i) input, or (ii) capital goods before being put to use, 25 [on which CENVAT credit has been taken is written off fully or partially or where any provision to write off fully or partially has been made in the books of account then] the manufacturer or service provider, as the case may be, shall pay an amount equivalent to the CENVAT credit taken in respect of the said input or capital goods: Provided that if the said input or capital goods is subsequently used in the manufacture of final products or the provision of 32 [ output services ] , the manufacturer or output service provider, as the case may be, shall be entitled to take the credit of the amount equivalent to the CENVAT credit paid earlier subject to the other provisions 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 duty paid by the person who removed such goods under sub-rule (5) and sub-rule (5A). (7) Notwithstanding anything contained in sub-rule (1) 47 [ sub-rule (1a) ] and sub-rule (4),- (a) CENVAT credit in respect of inputs or capital goods produced or manufactured, by a hundred per cent. export-oriented undertaking or by a unit in an Electronic Hardware Technology Park or in a Software Technology Park other than a unit which pays excise duty levied under section 3 of the Excise Act read with serial numbers 3,5, 6 and 7 of notification No. 23/2003-Central Excise, dated the 31st March, 2003, [G.S.R. 266(E), dated the 31st March, 2003] and used in the manufacture of the final products or in providing an output service, in any other place in India, in case the unit pays excise duty under section 3 of the Excise Act read with serial number 2 of the notification No. 23/2003-Central Excise, dated the 31st March, 2003, [G.S.R. 266(E), dated the 31st March, 2003], shall be admissible equivalent to the amount calculated in the following manner, namely:- Fifty per cent. of [X multiplied by {(1+BCD/100) multiplied by (CVD/100)}], where BCD and CVD denote ad valorem rates, in per cent., of basic customs duty and additional duty of customs leviable on the inputs or the capital goods respectively and X denotes the assessable value. Provided that the CENVAT credit in respect of inputs and capital goods cleared on or after 1st March, 2006 from an export oriented undertaking or by a unit in Electronic Hardware Technology Park or in a Software Technology Park, as the case may be, on which such unit pays excise duty under section 3 of the Excise Act read with serial number 2 of the notification no. 23/2003-Central Excise dated 31st March, 2003 [G.S.R. 266(E), dated the 31st March, 2003] shall be equal to 16 {X multiplied by [(1+BCD/200) multiplied by (CVD/100)].} 17 [ Provided further that the CENVAT credit in respect of inputs and capital goods cleared on or after the 7 th September, 2009 from an export-oriented undertaking or by a unit in Electronic Hardware Technology Park or in a Software Technology Park, as the case may be, on which such undertaking or unit has paid - (A) excise duty leviable under section 3 of the Excise Act read with serial number 2 of the notification no. 23/2003-Central Excise, dated 31st March, 2003 [G.S.R. 266(E), dated the 31st March, 2003]; and (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); [8,9] (iiia) 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) ; (iv) the additional duty leviable under section 3 of the Customs Tariff Act, equivalent to the duty of excise specified under items (i), (ii) and (iii) above; (v) the additional duty of excise leviable under section 157 of the Finance Act, 2003 (32 of 2003); (vi) the education cess on taxable services leviable under section 91 read with section 95 of the Finance (No.2) Act, 2004 (23 of 2004); and [10] (via) the Secondary and Higher Education Cess on taxable services leviable under section 136 read with section 140 of the Finance Act, 2007 (22 of 2007); and; [11] (vii) the additional duty of excise leviable under section 85 of Finance Act, 2005 (18 of 2005 ) shall be utilised towards payment of duty of excise or as the case may be, of service tax leviable under the said Additional Duties of Excise (Textiles and Textile Articles) Act, 1978 or the National Calamity Contingent duty leviable under section 136 of the Finance Act, 2001 (14 of 2001), or the education cess on excisable goods leviable under section 91 read with section 93 of the said Finance (No.2) Act, 2004 (23 of 2004), or 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) or the additional duty of excise leviable under section 157 of the Finance Act, 2003 (32 of 2003), or the education cess on taxable services leviable under section 91 read with section 95 of the said Finance (No.2) Act, 2004 (23 of 2004), or the Secondary and Higher Education Cess on taxable services leviable under section 136 read with section 140 of the Finance Act, 2007 (22 of 2007), or the additional duty of excise leviable under section 85 of the Finance Act, 2005 (18 of 2005) respectively, on any final products manufactured by the manufacturer or for payment of such duty on inputs themselves, if such inputs are removed as such or after being partially processed or on any output service; Provided that the credit of the education cess on excisable goods and the education cess on taxable services can be utilized, either for payment of the education cess on excisable goods or for the payment of the education cess on taxable services: Provided further that the credit 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 duty of excise specified in the First Schedule to the Excise Tariff Act .] 39 [Provided also that the credit of Education Cess and Secondary and Higher Education Cess paid on inputs or capital goods received in the premises of the provider of output service on or after the 1st day of June, 2015 can be utilized for payment of service tax on any output service: 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 premises of the provider of output service in the financial year 2014-15 can be utilized for payment of service tax on any output service: Provided also that the credit of Education Cess and Secondary and Higher Education Cess paid on input service in respect of which the invoice, bill, challan or Service Tax Certificate for Transportation of Goods by Rail (referred to in rule 9), as the case may be, is received by the provider of output service on or after the 1st day of June, 2015 can be utilized for payment of service tax on any output service.] Explanation.- For the removal of doubts, it is hereby declared that the credit of the additional duty of excise leviable under section 3 of the Additional Duties of Excise (Goods of Special Importance) Act, 1957 (58 of 1957) paid on or after the 1st day of April, 2000, may be utilised towards payment of duty of excise leviable under the First Schedule or the Second Schedule to the Excise Tariff Act; [12] (c) the CENVAT credit, in respect of additional duty leviable under section 3 of the Customs Tariff Act, paid on marble slabs or tiles falling under tariff items 2515 12 20 and 2515 12 90 respectively of the First Schedule to the Excise Tariff Act shall be allowed to the extent of thirty rupees per square meter; Explanation.- Where the provisions of any other rule or notification provide for grant of whole or part exemption on condition of non-availability of credit of duty paid on any input or capital goods, or of service tax paid on input service, the provisions of such other rule or notification shall prevail over the provisions of these rules. 48 [ (d) Cenvat credit in respect of Krishi Kalyan Cess on taxable services leviable under section 161 of the Finance Act, 2016 (28 of 2016) shall be utilised only towards payment of Krishi Kalyan Cess on taxable services leviable under section 161 of the Finance 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 capital goods, on which CENVAT Credit has been taken, are removed after being used, the manufacturer or provider of output service shall pay an amount equal to the CENVAT Credit taken on the said capital goods reduced by 2.5 per cent for each quarter of a year or part thereof from the date of taking the Cenvat Credit. 6. Sub-rule 5B has been substituted vide notification no. 16/2009 CE(NT) dated 7-7-2009 , earlier this sub-rule was inserted vide Notification No. 26/2007 CE(NT) dated 11/5/2007), as: [(5B). If the value of any, (i) input, or (ii) capital goods before being put to use, on which CENVAT Credit has been taken is written off fully or where any provision to write off fully has been made in the books of account, then the manufacturer shall pay an amount equivalent to the CENVAT credit taken in respect of the said input or capital goods: Provided that if the said input or capital goods is subsequently used in the manufacture of final products, the manufacturer shall be entitled to take the credit of the amount equivalent to the CENVAT Credit paid earlier subject to the other provisions of these rules. ] 7. Sub-rule 5C has been inserted vide Notification No 33/2007 CE (NT) dated 7/9/2007 8. Sub-clause (iiia) 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;) 9. After sub-clause (iii), sub-clause (iiia) has been inserted,:- vide Notification No. 10/2007 CE (NT) dated 1/3/2007 10. After sub-clause (vi), sub-clause (via) has been inserted vide Notification No. 27/2007 CE(NT) dated 12/5/2007) 11. After Sub-cluase (vii), the provisions have been amended as: (After sub-clause (vii), for the portion beginning with the words shall be utilized only towards payment of duty of excise and ending with the words after being partially processed or on any output service , the above has been substituted, vide Notification No. 27/2007 CE(NT) dated 12/5/2007) (After sub-clause (vii), in the portion beginning with the words shall be utilized only towards and ending with the words after 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 1 st 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) dated 1-3-2008 - Consequently second provision has been omitted. Before omission, second proviso was read as under: Provided further that such payment shall not be required to be made when any capital goods are removed outside the premises of the provider of output service for providing the output service and the capital goods are brought back to the premises within 180 days, or such extended period not exceeding 180 days as may be permitted by the jurisdictional Deputy Commissioner of Central Excise, or Assistant Commissioner of Central Excise, as the case may be, of their removal. 15. Has been added vide Notification No. 35/2008 CE (NT) dated 24/9/2008 16. For the expression X multiplied by [(1+BCD/400) multiplied by (CVD/100)] , the expression X multiplied by [(1+BCD/200) multiplied by (CVD/100)] has been substituted vide Notification No. 48/2008 CE (NT) dated 5/12/2008 17. Inserted vide notification no. 22/2009 CE(NT) dated 7-9-2009 18. In rule 3 , in sub-rule (4), after the fourth proviso, the proviso has been inserted, vide Notification No. 26/2010-Central Excise (N.T.), dated 29.06.2010 19. Inserted vide notification no. 3/2011 CE(NT) dated 1.3.2011 w.e.f. 1.3.2011 Further Substituted vide Notification No. 21/2012 - Central Excise (N.T.), dated 27/03/2012, before it was read as:- Provided that CENVAT credit of such duty of excise shall not be allowed to be taken when paid on any goods in respect of which the benefit of an exemption under notification No.1/2011- CE, dated the 1st March, 2011 is availed 20. Inserted vide notification no. 3/2011 CE(NT) dated 1.3.2011 w.e.f. 1.3.2011 21. Inserted vide notification no. 3/2011 CE(NT) dated 1.3.2011 w.e.f. 1.3.2011 22. Substituted vide notification no. 3/2011 CE(NT) dated 1.3.2011 w.e.f. 1.3.2011, before it was read as, Provided further 23. Inserted vide notification no. 3/2011 CE(NT) dated 1.3.2011 w.e.f. 1.3.2011 24. Substituted vide notification no. 3/2011 CE(NT) dated 1.3.2011 w.e.f. 1.3.2011, before it was read as, Provided further 25. Substituted vide notification no. 3/2011 CE(NT) dated 1.3.2011 w.e.f. 1.3.2011, before it was read as, on which CENVAT credit has been taken is written off fully or where any provision to write off fully has been made in the books of account then , 26 Omitted vide notification no. 18/2012 CE(NT) dated 17-3-2012 , 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. Inserted vide (w.e.f. 18-4-2006) by Section 71 read with Eight Schedule of the Finance Act, 2011 (8 of 2011) 30. Inserted vide Notification No.28/2012-Central Excise (N.T), Dated 20/06/2012 31. Substituted vide Notification No.28/2012-Central Excise (N.T), Dated 20/06/2012 , before it was read as:- premises of 32. Substituted vide Notification No.28/2012-Central Excise (N.T), Dated 20/06/2012 , before it was read as:- taxable services 33. Inserted vide Notification No. 3/2013-Central Excise (N.T.), Dated 1/03 2013. 34. Substituted vide Notification No. 12 /2013-CE (NT) September 27, 2013 , before it was read as, 27 [(5A) If the capital goods, on which CENVAT credit has been taken, are removed after being used, whether as capital goods or as scrap or waste, 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 CEVAT 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: Provided that if the amount so calculated is less than the amount equal to the duty leviable on transaction value, the amount to be paid shall be equal to the duty leviable on transaction value.] 35. Omitted vide NOTIFICATION NO. 01/2014-CX. (N.T.) January 8, 2014, before it was read as, 33 [Explanation. - If the manufacturer of goods or the provider of output service fails to pay the amount payable under sub-rules (5), (5A), and (5B), it shall be recovered, in the manner as provided in rule 14 , for recovery of CENVAT credit wrongly taken.] . 36. Inserted vide NOTIFICATION NO. 01/2014-CX. (N.T.) January 8, 2014, 37. Inserted vide NOTIFICATION NO. 01/2014-CX. (N.T.) January 8, 2014, 38. Inserted vide Not. 12/2015 - Dated 30-4-2015 39. Inserted vide Not. 22/2015 - Dated 29-10-2015. 40. Omitted vide Not. 01/2016 - Dated 1-2-2016 w.e.f. 1 st day of March, 2015, before it was read as, 20 [ Provided that CENVAT credit shall not be allowed in excess of eighty-five per cent. of the additional duty of customs paid under sub-section (1) of section 3 of the Customs Tariff Act , on ships, boats and other floating structures for breaking up falling under tariff item 8908 00 00 of the First Schedule to the Customs Tariff Act;] 41. Inserted vide Not. 02/2016 - Dated 3-2-2016. 42. Substituted vide Not. 13/2016 - Dated 1-3-2016, w.e.f. 1st March, 2016, before it was read as, said National Calamity Contingent duty on goods falling under tariff items 8517 12 10 and 8517 12 90 respectively of the First Schedule of the Central Excise Tariff 43. Inserted vide Not. 13/2016 - Dated 1-3-2016, w.e.f. 1st March, 2016 44. Substituted vide Not.27/2016 - Dated 14-5-2016 , before it was read as, sub-clause (1) of clause 159 of the Finance Bill, 2016 : 45. Inserted vide Not. 28/2016 - Dated 26-5-2016 w.e.f. 1st of June, 2016 46. Inserted vide Not. 28/2016 - Dated 26-5-2016 w.e.f. 1st of June, 2016 47. Inserted vide Not. 28/2016 - Dated 26-5-2016 w.e.f. 1st of June, 2016 48. Inserted vide Not. 28/2016 - Dated 26-5-2016 w.e.f. 1st of June, 2016