Three substantial amendments to Cenvat Credit Rules, 2004 concerning Central Excise and Service Tax

Notification no. 16/2009 CE(NT) issued to amend the provisions of Rule 2, Rule 3 and Rule 6 of the Cenvat Credit Rules, 2004 as follows:

Relating to Service Tax:

Rule 3(5B) of the Cenvat Credit Rules, 2004 amended, to provide that a service provider shall pay back the amount of credit taken on inputs/capital goods fully written off. Earlier this provision was limited to manufacturer only.

Relating to Central Excise and Service Tax

Rule 6(3) of the Cenvat Credit Rules, 2004 amended, to reduce the amounts to be paid on clearances of exempted goods and on provision of exempted services, from 10% to 5% in case of Central Excise and from 8% to 6% in case of service tax respectively.

Relating to Central Excise

Rule 2(k) of the Cenvat Credit Rules 2004 amended to clarify that 'inputs' which are eligible for availing Cenvat credit shall not include cement, angles, channels, CTD or TMT bar and other items used for construction of shed, building or structure for support of capital goods.

You can access the amended provisions of Rule 2, Rule 3 and Rule 6 of the Cenvat Credit Rules, 2004 by visiting the relevant links.