Amendment of Rule 57H - Clarification regarding Budget explanatory notes - Central Excise - 26/91-CX.8

Amendment of Rule 57H - Clarification regarding Budget explanatory notes Circular No. 26/91-CX.8 Dated 24-9-1991 [From F. No. 267/72/91-CX.8] Government of India Central Board of Excise customs New Delhi Subject : Amendment of Rule 57H - Clarification regarding Budget explanatory notes. I am directed to refer to the Budget Notification No. 28/91-C.E. (N.T.), dated 25th July, 1991, which seeks to amend Rule 57H of the Central Excise Rules, 1944 and the explanatory Notes in para 24.6(i). Though statutorily a manufacturer can take credit of the duty paid on inputs only after filing declaration under Rule 57G, para 24.6(i) of the explanatory notes mentions that the manufacturer can claim such credit of duty in transitional cases covered under Rule 57H even before filing the declaration. This does not seem to be in conformity with the law as the filing of declaration before availing of the credit is a statutory requirement. Notification No. 28/91-C.E. (N.T.) has also not sought to make any such amendment in legal provisions. Explanatory note under reference has, therefore, merely sought to convey that the credit of duty would be available to assessee availing of the provisions of the Rule 57H, also for the inputs received even before filing of the declaration and credit would not be restricted to inputs received after filing the declaration. Statutory requirement of filing of declaration would however continue to be in force as before and the said requirement has not been relaxed in any manner whatsoever. It is required that the field formations may be advised suitably, on the basis of this clarification. These instructions issue in consultation with T.R.U. Receipt of this circular may please be acknowledged.