Deemed Credit and Credit of Addl. Duty –Some Clarifications

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..... se changes certain clarifications have been sought for. Points raised and comments thereon are given below. Point No. l Whether deemed credit is available in terms of notification No. 7/2003-CE or only in terms of notification No. 14/2002-CE or 15/2002-CE. Comments: It is to clarify that during the month of March 2003, an assessee can simultaneously avail of the new rates and also the deemed c .....

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..... emed credit rates have not been reduced, though the yarn duty rates have been reduced. This is mainly on consideration that the reduction in duty rates on yarn would be reflected in fabric price only after quite some time because of the time lag between the production of yarn and production of processed fabrics. Point No.2. Whether credit of additional duty (GSI) accrued earlier (prior to 1.3.20 .....

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..... ispensation the requirement of separate accounting of the AED(GSI) no longer exists since 10-10-2000. As the reason for the amendment to CENVAT credit rules existed even prior to 1st march, 2003, it was considered appropriate not to put any cap on the use of the AED(GSI) credit accruing prior to 01-03-2003 in the said credit rules. It is accordingly clarified that credit of additional duty (GSI) a .....

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