Amendments in the CENVAT Credit Rules, 2002 - 054/2003 - Central Excise - Non Tariff

Amendments in the CENVAT Credit Rules, 2002 

G.S.R.(E).- In exercise of the powers conferred by section 37 of the Central Excise Act, 1944 (1 of 1944), the Central Government hereby makes the following rules further to amend the CENVAT Credit Rules, 2002, namely:-

1. (1) These rules may be called the CENVAT Credit (Fifteenth Amendment) Rules, 2003.

(2) They shall come into force on the date of their publication in the Official Gazette.

2. In the CENVAT Credit Rules, 2002,

(a) in rule 7, in sub-rule (1) after clause (e), the following clause shall be inserted, namely:-

"(f) a challan, referred to in rule 8A.";

(b) after Rule 8, the following rule shall be inserted, namely:-

"8A. Transfer of credit by exempted textile manufacturer,-

(1) An independent weaver of fabrics, not subjected to any process, falling under Chapters 51, 52, 54, 55, 58 or 60 of the First Schedule to the Central Excise Tariff Act, 1985 (5 of 1986) (hereinafter in this rule referred to as the First Schedule to the Central Excise Tariff Act) and which are exempted from the whole of the duty of excise leviable thereon under the said First Schedule to the Central Excise Tariff Act and the First Schedule to the Additional Duties of Excise(Goods of Special Importance) Act, 1957 (58 of 1957), shall observe the following procedure for the purposes of transfer of the credit of duty paid on the inputs, falling under Chapter 51, 52, 54 or 55 of the First Schedule to the Central Excise Tariff Act, used in the manufacture of the said fabrics, to the buyer of the said fabrics, namely:-

(i) the said independent weaver shall obtain a declarant code from the Superintendent of Central Excise having jurisdiction in this behalf, in terms of the provision contained in notification No. 36/2001-Central Excise(N.T.), dated the 26th June, 2001 (G.S.R. 465(E), dated the 26th June, 2001);

(ii) the said independent weaver shall receive the said inputs on the basis of documents referred to under clause (a), (b), (c), (d) or (e) of sub-rule (1) of rule 7;

(iii) the said independent weaver shall maintain records of receipt, disposal, consumption and inventory of the inputs in the same manner as specified in respect of manufacturers of final products in sub-rule (4) of Rule 7;

(iv) no such fabrics shall be removed from the factory except under an invoice (not to be considered to have been issued in terms of the provisions of Central Excise Rules, 2002 for the purposes of being a document under sub-rule (1) of rule7) and a challan, and the challan shall be in a format specified in the Annexure-I to these rules as "CHALLAN FORM" and shall bear pre-printed serial numbers and shall be in triplicate for the following purposes, namely:-

(a) original- for buyer

(b) duplicate- for submission alongwith quarterly return

(c) triplicate-manufacturers office copy;

(v) the said independent weaver shall submit within fifteen days from the close of each quarter of a year to the Superintendent of Central Excise having jurisdiction in this behalf, a statement in the format specified in Annexure-II to these rules, enclosing all duplicate copies of challan issued during the quarter in respect of such fabrics.

Explanation.- For the purposes of this rule "independent weaver" means a weaver who works on his own, purchases the yarn for such work himself and sells the unprocessed fabrics manufactured out of such work.

(c) after rule 14, the following Annexures shall be inserted, namely:-

[F.No. B3/1/2003-TRU]

Foot note.- The principal rules were published in the Gazette of India vide notification No.5/2002-Central Excise (N.T.), dated the 1st March, 2002, vide number GSR 144 (E), dated the 1st March, 2002 and were last amended vide notification No.52/2003-Central Excise (N.T.), dated the 6th June, 2003 number GSR 460 (E), dated the 6th June, 2003.

(Please refer NTF. NO. 57/2003-CE(N.T.), DT. 25/06/2003 for further amendments in CENVAT Credit Rules, 2002)