We are pleased to release a Tax Alert which gives an update on the recent amendment in the CENVAT Credit Rules, 2004 vide Notification No. 1/2014-Central Excise (N.T.) dated 8 January 2014, issued by the Ministry of Finance,
The amendment in Rule 3(5C) of the CENVAT Credit Rules, 2004 requires the reversal of CENVAT credit on input services used in the manufacture of goods, on which duty has been remitted under Rule 21 of the Central Excise Rules, 2002, due to loss or destruction of such goods.
Prior to the amendment, the requirement of reversal of CENVAT credit was restricted only to specified duty paid on inputs used in the manufacture of such goods.
Further, it has been clarified by way of an explanation, that the reversal under sub-rules (5), (5A), (5B) and (5C) of Rule 3 of the CENVAT Credit Rules, 2004, is to be made before the due date for payment of duty for the month.
The CENVAT Credit (First Amendment) Rules, 2014 shall come into force with effect from the date of their publication in the Official Gazette.
The amendment in Rule 3(5C) of the CENVAT Credit Rules, 2004 requires the reversal of CENVAT credit on input services used in the manufacture of goods, on which duty has been remitted under Rule 21 of the Central Excise Rules, 2002, due to loss or destruction of such goods.
Prior to the amendment, the requirement of reversal of CENVAT credit was restricted only to specified duty paid on inputs used in the manufacture of such goods.
Further, it has been clarified by way of an explanation, that the reversal under sub-rules (5), (5A), (5B) and (5C) of Rule 3 of the CENVAT Credit Rules, 2004, is to be made before the due date for payment of duty for the month.
The CENVAT Credit (First Amendment) Rules, 2014 shall come into force with effect from the date of their publication in the Official Gazette.
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