Circular No.:
990/14/2014-CX-8
F. No. 267/72/2013-CX.8
(Pt)
Government of India
Ministry of Finance
Department of Revenue
Central Board of Excise
and Customs
*************
New Delhi, the 19th of November, 2014
To,
Principal Chief Commissioners/Chief
Commissioners of Central Excise (All)
Principal Chief Commissioners/Chief
Commissioners of Central Excise of Central Excise & Customs (All)
Director General, Directorate General of Central
Excise Intelligence
Principal Commissioners/Commissioners of Central
Excise (All)
Principal Commissioners/Commissioners of Central
Excise & customs (All)
Web-master, CBEC
Madam/Sir,
Sub: Clarification regarding availment of CENVAT credit after six
months-reg.
Attention is invited to the Notification of the
Government of India in the Ministry of Finance, Department of Revenue No.
21/2014-CE (NT) dated 11.07.2014, vide which, inter alia, amendment was made in
Rule 4(1) and 4(7) of CENVAT Credit Rules, 2004 (CCR, 2004) to prescribe that
manufacturer or output service provider shall not take CENVAT credit after six
months of the date of issue of any of the documents specified in sub-rule (1)
of Rule 9.
2. Concerns have been expressed by trade that in
view of above changes, the re-credit taken in following three situations may be
hit by the time limit of six months prescribed:
i. 3rd proviso to Rule 4(7) of CCR, 2004 prescribes that if the payment
of value of input service and service tax payable is not made within three
months of date of invoice, bill or challan, then the CENVAT Credit availed is required to be paid back by
the manufacturer or service provider. Subsequently, when such payment of value
of input service and service tax is made, the amount so paid back can be
re-credited.
ii. According to Rule 3(5B) of CCR, 2004, if the
value of any input or capital goods before being put to use on which CENVAT
Credit has been taken, is written off or such provisions made in Books of
Account, the manufacturer or service provider is required to pay an amount
equal to credit so taken. However, when the inputs or capital goods are
subsequently used, the amount so paid can be re-credited in the account.
iii. Rule 4(5)(a) of CCR, 2004 prescribes that in
case inputs sent to job worker are not received back within 180 days, the
manufacturer or service provider is required to pay an amount equal to credit
taken on such inputs in the first instance. However, when the inputs are
subsequently received back from job worker, the amount so paid can be
re-credited in the account.
3. The matter has been examined. The purpose of the
amendment made by Notification No. 21/2014-CE (NT) dated 11.07.2014 is to
ensure that after the issue of a document under sub-rule (1) of Rule 9, credit
is taken for the first time within six months of the issue of the document.
Once this condition is met, the limitation has no further application. It is,
therefore, clarified that in each of the three situations described above
pertaining to Rule 4(7), Rule 3(5B) or Rule 4(5) (a) of CCR, 2004, the
limitation of six months would apply when the credit is taken for the first
time on an eligible document. It would not apply for taking re-credit of amount
reversed, after meeting the conditions prescribed in these rules
4. Difficulties faced, if any, in
implementation of this Circular may be brought to the notice of the Board.
Hindi version follows.
(Shankar Prasad Sarma)
