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TMI BlogScope of Rule 6(3) of Cenvat Credit Rules, 2004 – Restriction on utilization of credit upto 20%X X X X Extracts X X X X X X X X Extracts X X X X ..... Scope of Rule 6(3) of Cenvat Credit Rules, 2004 – Restriction on utilization of credit upto 20% X X X X Extracts X X X X X X X X Extracts X X X X ..... x Payable. The corresponding provision: Rule 6(3)(c) of the Cenvat Credit Rules, 2004. At present the restriction is 20%. In view of the provision of these rules, a question has been raised before the tribunal that whether the limit of 35% (Now 20%) is absolute and after utilizing the credit to the extent of 35% (now 20%) the balance amount would lapse or would be allowed to be carried forward an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d can be utilized further. In the matter of M/s VIJAYANAND ROADLINES LTD. Versus COMMISSIONER OF C. EX., BELGAUM reported in 2007 -TMI - 1450 - CESTAT,BANGALORE, honorable tribunal has held that rule 3(5) [now rule 6(3)(c)] does not provide any restriction on utilization of remaining part of cenvat credit in the succeeding period and therefore the assessee can carry forward the unutilized amount ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (after setting off of 35% or 20%) and use to pay service tax. CBEC has issued a Circular No. 77/07/2004, Dated March 10th, 2004 clarifying the issue Clarification on ambiguity in the provisions of Rule 3(5) of the Service Tax Credit Rules, 2002. Honorable tribunal has also take a note of this circular and said there is nothing in this circular also to restrict the assessee from carrying forward ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and utilization of cenvat credit after utilizing the amount upto 35% (not 20%).
Also see: Cenvat Credit Practice Manual - Chapter 9B - Exempted Services - Service Provider X X X X Extracts X X X X X X X X Extracts X X X X
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