Cenvat credit of basic excise duty for payment of NCCD.

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..... Commissioners of Central Excise (including LTU), All Commissioners of Central Excise (including LTU). Madam/Sir, Subject: Cenvat credit of basic excise duty for payment of NCCD Representations have been received from certain industry associations seeking a clarification whether Cenvat credit of the duty of excise specified in the First Schedule to the Centra .....

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..... to sub-rule (4) of rule 3 of Cenvat Credit Rules, 2004 , credit may be utilized for payment of any duty of excise on any final product. NCCD is a duty of excise levied under Section 136 of the Finance Act, 2001. The only restriction with regard to the utilization of Cenvat credit of any duty specified in sub-rule (1) for payment of NCCD is prescribed in the fifth proviso to sub-rule (4) where .....

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..... fifth proviso to rule 3 ( 4), credit of basic excise duty paid on inputs used in or in relation to the manufacture of final products is permitted to be utilized for payment of NCCD on such final products in terms of the provisions of Cenvat Credit Rules, 2004 . This position is in conformity with the view taken by CESTAT, Kolkata in Prag Bosmi Synthetics Ltd vs. CCE Dibrugarh 2007 (5) TMI 434 .....

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