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TMI BlogRegarding clarification on issues relating to CENVAT Credit Rules 2004X X X X Extracts X X X X X X X X Extracts X X X X ..... effected vide Notification 13/2011-CE (NT) dt 31.3.2011. On a few issues trade has requested for clarity. Accordingly the following clarifications are presented issue wise in a tabular format. S.No. Issue Clarification 1 Can credit of capital goods be availed of when used in manufacture of dutiable goods on which benefit under Notification 1/2011- CE is availed or in provision of a service whose part of value is exempted on the condition that no credit of inputs and input services is taken. As per Rule 6(4) no credit can be availed on capital goods used exclusively in manufacture of exempted goods or in providing exempted service. Goods in respect of which the benefit of an exemption under notification No. 1/2011-CE, dated the 1st Ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... goods used in the factory and are used in relation to the manufacturing business and hence the credit of same is allowed. 4 Is the credit of input services used for repair or renovation of factory or office available. Credit of input services used for repair or renovation of factory or office is allowed. Services used in relation to renovation or repairs of a factory, premises of provider of output service or an office relating to such factory or premises, are specifically provided for in the inclusive part of the definition of input services. 5 Is the credit of Business Auxiliary Service (BAS) on account of sales commission now disallowed after the deletion of expression "activities related to business". The definition of input servi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... able or are refundable/ refunded may not be included. Discounts are to be included. 10 Does the expression "in or in relation" used in Rule 6 override the definition of "input" under Rule 2(k) for determining the eligibility of Cenvat credit. The definition of "input" is given in Rule 2(k) and Rule 6 only intends to segregate the credits of inputs used towards dutiable goods and exempted goods. While applying Rule 6, the expression "in or in relation" must be read harmoniously with the definition of "inputs". 11 Sub-rules 3B and 3C of rule 6 apply to whole entity or independently in respect of each registration. The sub-rules 6(3B) and 6(3C) impose obligation on the entities providing banking and financial services (in case of a bank ..... X X X X Extracts X X X X X X X X Extracts X X X X
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