Date: 2014-01-08Category: Extra OrdinaryState: Union GovernmentCountry: India
The Central Govt. hereby makes the following rules further to amend the CENVAT Credit Rules, 2004, These rules may be called the CENVAT Credit (First Amendment) Rules, 2014.
Executive Summary:
This notification from the Ministry of Finance amends the CENVAT Credit Rules of 2004. It clarifies payment deadlines for amounts payable under specific subrules and addresses the recovery of wrongly taken and utilized CENVAT credit. The amendment is effective from the date of publication in the Official Gazette, January 8, 2014.
Key Points / Main Content:
Amendments to CENVAT Credit Rules, 2004:
* These rules may be called the CENVAT Credit First Amendment Rules, 2014.
Rule 3 Amendment:
* The explanation following the proviso to sub-rule 5B in Rule 3 of the CENVAT Credit Rules, 2004, is omitted.
Rule 5C Amendment:
* In sub-rule 5C, the phrase "and the CENVAT credit taken on input services used in or in relation to the manufacture or production of said goods" is inserted after "production of said goods".
Clarifications on Payment and Recovery:
* Explanation 1: Unless otherwise specified, payments under sub-rules 5, 5A, 5B, and 5C must be made by debiting CENVAT credit or otherwise by the 5th of the following month, except for March, where payment is due by March 31st.
* Explanation 2: If a manufacturer or output service provider fails to pay the amount under sub-rules 5, 5A, 5B and 5C, the amount will be recovered as CENVAT credit wrongly taken and utilised, following rule 14.
Impact Analysis:
Manufacturers of Goods and Output Service Providers:
* Impact: Affected by changes in payment deadlines and procedures for CENVAT credit. Liable for recovery actions if payments are not made according to the rules.
* Action Required: Ensure timely payments of amounts due under sub-rules 5, 5A, 5B, and 5C, and be aware of the recovery process for wrongly taken/utilized CENVAT credit.
Central Government:
* Impact: Responsible for enforcing the amended CENVAT Credit Rules, 2004.
* Action Required: Implement the amended rules and ensure compliance.
Key Entities Referenced
Mayapuri, New Delhi: Location of the Government of India Press.
CENVAT Credit Rules, 2004: The primary policy document being amended by this notification.
Central Excise Act, 1944: The Act under which the power is exercised to make amendments to the CENVAT Credit Rules.
Finance Act, 1994: Another Act under which the power is exercised to make amendments to the CENVAT Credit Rules.
New Delhi: The location where the notification was issued.
Ministry of Finance: The ministry responsible for the Department of Revenue, which issued the notification.
Department of Revenue: The department under the Ministry of Finance that issued the notification.
Pankaj Jain: The Under Secretary who signed the notification.
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NOTIFICATION
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New Delhi, the 8th January, 2014
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88 GI/2014 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(i)]
Government hereby makes the following rules further to Explanation 2.—If the manufacturer of goods or
amend the CENVAT Credit Rules, 2004, namely :— the provider of output service fails to pay the amount
1. (1) These rules may be called the CENV A T Credit payable under sub-rules (5), (5A), (5B) and (5C), it
(First Amendment) Rules, 2014. shall be recovered, in the manner as provided in rule
(2) They shall come into force on the date of their 14, for recovery of CENVAT credit wrongly taken
publication in the Official Gazette.
and utilised.”
2. In rule 3 of the CENVAT Credit Rules, 2004,—
(i) the Explanation occurring after the proviso to sub- [F. No. 267/126/2011-CX. 8]
rule (5B) shall be omitted;
PANKAJ JAIN, Under Secy.
(ii) in sub-rule (5C), after the words "production
of said goods", the words "and the CENVAT
Note:—The principal rules were published in the
credit taken on input services used in or in
Gazette of India, Extraordinary, Part II,
relation to the manufacture or production of
Section 3, Sub-section (i), dated the
said goods" shall be inserted;
10th September, 2004, vide Notification No.
(iii) after sub-rule (5C), the following explanations 23/2004-Central Excise (N.T) dated the 10th
shall be inserted, namely: — September, 2004, vide number G.SR. 600(E),
dated the 10th September, 2004 and last
Explanation 1.—The amount payable under sub-rules
amended vide Notification No. 18/2013-
(5), (5A), (5B) and (5C), unless specified otherwise,
Central Excise (N.T.) dated the
shall be paid by the manufacturer of goods or the
31st December, 2013, published in the
provider of output service by debiting the CENVAT
Gazette of India, Extraordinary, Part II,
credit or otherwise on or before the 5th day of the
Section 3, Sub-section (i), vide number
following month except for the month of March,
G.S.R. 808 (E), dated the 31st December,
where such payment shall be made on or before the
2013.
31st day of the month of March.
Printed by the Manager, Government of India Press, Ring Road, Mayapuri, New Delhi-110064
and Published by the Controller of Publications, Delhi-110054.