Amend the CENVAT Credit Rules, 2002
NOTIFICATION NO. 28/2003-CE(N.T.)
DATED 01/04/2003
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 (Sixth 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,-
(i) the words and figures "the yarns or fabrics falling under Chapter 50, 51, 52, 53, 54, 55, 58 or 60 or readymade garments falling under Chapter 61 or 62, of First Schedule to the Tariff Act", wherever they occur, the words and figures "yarns or fabrics falling under Chapter 50, 51, 52, 53, 54, 55, 58 or 60, readymade garments falling under Chapter 61 or 62 or made up textile articles falling under Chapter 63 of First Schedule to the Tariff Act" shall be substituted.
(ii) in rule 7, in sub-rule (1), for clause (e), the following shall be substituted, namely,-
'(e) any of the documents referred to in clauses (a) to (d), issued in the name of a person ,-
(a) involved in purchase and sale of yarns or fabrics falling under Chapter 50, 51, 52, 53, 54, 55, 58 or 60, or made up textile articles falling under Chapter 63 of First Schedule to the Tariff Act; or
(b) undertaking activities pertaining to manufacture of yarns or fabrics falling under Chapter 50, 51, 52, 53, 54, 55, 58 or 60, readymade garments falling under Chapter 61 or 62 or made up textile articles falling under Chapter 63 of First Schedule to the Tariff Act, which is either fully exempt from duties of excise or are chargeable to "Nil" rate of duty or the said activity not amounting to manufacture,
being endorsed in full for the entire consignment covered under the said document by the said person to any other manufacturer, producer, first stage dealer or second stage dealer.
Explanation:- For the removal of doubt, it is clarified that the manufacturer, producer, first stage dealer or second stage dealer, as the case may be, in whose name such endorsement has been made, shall not be denied the credit merely on the grounds that the description of the goods mentioned in such an endorsed document has undergone a change on account of such an activity been undertaken by such person, as referred to in sub clause (ii) of this clause on the said goods.';
(iii) In rule 9A,-
(A) in sub-rule (3), -
(a) in clause (a), for the words, "shall be calculated on the basis of such rate", the words "shall be calculated on the basis of such rates or in such manner" shall be substituted;
(b) in clause (b),-
(A) in the opening paragraph beginning, for the words " The credit of duty on inputs contained in fabrics lying in stock", the words " The credit of duty on inputs contained in fabrics or garments lying in stock" shall be substituted;
(B) in sub-clause (ii), for the words and figures "dated 28.2.2003.", the words, figures and letters "dated the 28th day of February, 2003; or" shall be substituted; and
(C) after sub-clause (ii) and entries relating thereto, the following sub-clause shall be inserted, namely,-
"(iii) in all other cases, in such manner as may be notified by the Central Government in this behalf.
(B) After sub-rule (3), the following sub-rule shall be inserted, namely,-
"(4) The declaration referred to in this rule shall be made on or before the 7th Day of April, 2003.";
F.No. B3/4/2003-TRU
Footnote.- The principal rules were published in the Gazette of India vide notification No. 5/2002-Central Excise (N.T.), dated the 1st March, 2002, GSR 144 (E), dated the 1st March, 2002, and were last amended vide notification No. 25 /2003-Central Excise (N.T.), dated the 25th March, 2003, vide number GSR 243 (E), dated the 25th March, 2003.
(Please refer CIR NO.713/29/2003-CX, DT. 07/05/2003 - Certain clarification regarding excise duty structure on textile and textile articles)
(Please refer NTF. NO. 34/2003-CE(N.T.), DT. 10/04/2003 for further amendments in CENVAT Credit Rules, 2002)
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