Rule 16 - Cenvat credit admissible on chewing tobacco and Jarda scented tobacco in bulk packs - Chewing Tobacco and Unmanufactured Tobacco Packing Machines (Capacity Determination and Collection of Duty) Rules, 2010

16. Cenvat credit admissible on 1 [ chewing tobacco and Jarda scented tobacco] in bulk packs. (1) A manufacturer of 1 [chewing tobacco and Jarda scented tobacco] notified under section 3A of the Act 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 Tariff Act , leviable under the Act ; (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) ; (iv) 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) ; (v) the additional duty of excise leviable under section 85 of Finance Act, 2005 (18 of 2005) ], paid on 1 [chewing tobacco and Jarda scented tobacco] in bulk packs received in his factory on or after the 8th day of March, 2010 for use in manufacture of 1 [chewing tobacco and Jarda scented tobacco] notified under section 3A of the Act. (2) Except as provided under sub-rule (1), no CENVAT credit of duty paid on any input, capital goods or input services used in or in relation to manufacture of the notified goods shall be taken under the provisions of CENVAT Credit Rules, 2004 . (3) The CENVAT credit under sub-rule (1) may be taken immediately on receipt of bulk packs of 1 [chewing tobacco and Jarda scented tobacco] and may be utilised for payment of duty leviable under section 3A of the Act on 1 [chewing tobacco and Jarda scented tobacco]: Provided that while paying duty, the CENVAT credit shall be utilized only to the extent such credit is available on the last day of the month preceding the month for which duty is paid: Provided further that CENVAT credit in respect of - (i) the National Calamity Contingent duty leviable under section 136 of the Finance Act, 2001; (ii) the education cess on excisable goods leviable under section 91 read with section 93 of the Finance (No. 2) Act, 2004 ; (iii) the Secondary and Higher Education Cess on excisable goods leviable under section 136 read with section 138 of the Finance Act, 2007 ; (iv) the additional duty of excise leviable under section 85 of Finance Act, 2005 , shall be utilised towards the payment of the said National Calamity Contingent duty leviable under section 136 of the Finance Act, 2001, or the education cess on excisable goods leviable under section 91 read with section 93 of the said Finance (No. 2) Act, 2004, or the Secondary and Higher Education Cess on excisable goods leviable under section 136 read with section 138 of the Finance Act, 2007 or the additional duty of excise leviable under section 85 of the Finance Act, 2005 respectively, on 1 [chewing tobacco and Jarda scented tobacco] notified under Section 3A of the Act and manufactured by the manufacturer. (4) The CENVAT credit under sub-rule (1) shall be taken by the manufacturer on the basis of an invoice issued by a manufacturer for clearance of bulk packs of 1 [chewing tobacco and Jarda scented tobacco] from his factory. (5) The manufacturer shall maintain proper records for the receipt, disposal, consumption and inventory of the bulk packs of 1 [chewing tobacco and Jarda scented tobacco] used for manufacture of 1 [chewing tobacco and Jarda scented tobacco] notified under section 3A in which the relevant information regarding the value, duty paid, CENVAT credit taken and utilised, the person from whom such bulk packs have been procured is recorded and the burden of proof regarding the admissibility of the CENVAT credit shall lie upon the manufacturer taking such credit. (6) Where the 2 [where the CENVAT credit has been taken and utilised wrongly, the same] along with interest shall be recovered from the manufacturer and the provisions of sections 11A 3 [and 11AA] of the Act , shall apply mutatis mutandis for effecting such recoveries. Provided further that all such bulk packs of 1 [chewing tobacco and Jarda scented tobacco] on which credit has been wrongly taken or utilised wrongly shall be liable to confiscation and the manufacturer shall be liable to a penalty not exceeding the duty on such bulk packs of 1 [chewing tobacco and Jarda scented tobacco]: Provided also that in a case, where the CENVAT credit has been taken or utilised wrongly on account of fraud, wilful mis-statement, collusion or suppression of facts, or contravention of any of the provisions of the Act or the rules made thereunder with intention to evade payment of duty, then, the manufacturer shall also be liable to pay penalty in terms of the provisions of section 11AC of the Act . (7) Except as provided in this rule, no other provisions of CENVAT Credit Rules, 2004 shall apply in relation to the notified goods. ***************** Notes: 1. Substituted vide notification no. 10/2012 CE(NT) dated 17-3-2012 , before it was read as, chewing tobacco . 2. Substituted vide notification no. 10/2012 CE(NT) dated 17-3-2012 , before it was read as, Where the CENVAT credit has been taken or utilised wrongly, the same . 3. Substituted vide notification no. 10/2012 CE(NT) dated 17-3-2012 , before it was read as, section 11AB