NTF. NO. 19/2003-CE(N.T.), DT. 24/03/2003

Amendment in the CENVAT Credit Rules, 2002

In exercise of the powers conferred by section 37 of the Central Excise Act, 1944 (1 of 1944), the Central Government hereby makes the following rules further to amend the CENVAT Credit Rules, 2002, namely:-

1. (1) These rules may be called the CENVAT Credit (Fourth Amendment) Rules, 2003.

(In (1) Bold words has been amended vide Corrigendum, Dt. 03/04/2003)

(2) They shall come into force on the date of their publication in the Official Gazette.

2. In the CENVAT Credit Rules, 2002,

(a) in rule 3, after the clause (v) , the following clause shall be inserted, namely:-

"(vi) the additional duty of excise leviable under sub-clause (1) of clause 149 of the Finance Bill, 2003, which clause has, by virtue of the declaration made in the said Finance Bill under the Provisional Collection of Taxes Act, 1931 ( 16 of 1931), the force of law."; and

(b) in sub-rule (6), for clause (b), the following shall be substituted, namely:-

"(b) CENVAT credit in respect of -

(i) the additional duty of excise leviable under section 3 of the Additional Duties of Excise (Textiles and Textile Articles) Act, 1978 (40 of 1978);

(ii) the National Calamity Contingent duty leviable under section 136 of the Finance Act, 2001 (14 of 2001) as amended by clause 161 of the Finance Bill, 2003, which clause has, by virtue of the declaration made in the said Finance Bill under the Provisional Collection of Taxes Act, 1931(16 of 1931), the force of law;

(iii) the additional duty leviable under section 3 of the Customs Tariff Act, equivalent to the duty of excise specified under sub-clauses (i) and (ii) above; and

(iv) the additional duty of excise leviable under section 149 of the Finance Bill, 2003, which clause has, by virtue of the declaration made in the said Finance Bill under the Provisional Collection of Taxes Act, 1931 (16 of 1931), the force of law,

shall be utilized only towards payment of duty of excise leviable under the said Additional Duties of Excise (Textiles and Textile Articles) Act, or the National Calamity Contingent duty leviable under section 136 of the Finance Act, 2001 (14 of 2001) as amended by clause 161 of the Finance Bill, 2003, which clause has, by virtue of the declaration made in the said Finance Bill under the Provisional Collection of Taxes Act, 1931(16 of 1931), the force of law, or the additional duty of excise leviable under clause 149 of the Finance Bill, 2003, which clause has, by virtue of the declaration made in the said Finance Bill under the Provisional Collection of Taxes Act, 1931 (16 of 1931), the force of law, respectively, on any final products manufactured by the manufacturer or for payment of such duty on inputs themselves if such inputs are removed as such or after being partially processed.

Explanation.- For removal of doubts, it is clarified that the credit of the additional duty of excise leviable under section 3 of the Additional Duties of Excise (Goods of Special Importance) Act, 1957 (58 of 1957), may be utilised towards payment of duty of excise leviable under the First Schedule or the Second Schedule of the Central Excise Tariff Act, 1985 (5 of 1986)."

Alok Shukla
Deputy Secretary Government of India

F.No.337/210/2002-TRU

Foot note.- The principal rules were published in the Gazette of India vide notification No.5/2002-Central Excise (N.T.), dated the 1st March, 2002, vide number GSR 144 (E), dated the 1st March, 2003. and were last amended vide notification No, 18/2003-Central Excise (N.T.), dated the 13th March, 2003, vide number, GSR 216(E) dated the 13th March, 2003.

(Pl. refer Corrigendum, Dt. 03/04/2003 for amendments in Foot Note)

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