Cenvat Credit
Definitions Clarified
[Central Excise Notification 05 (Non Tariff) dated 24th February 2014]
In exercise of the powers conferred by section 37 of the
Central Excise Act,1944 (1 of 1944) and section 94 of the Finance Act,1994 (32
of 1994), the Central Government hereby
makes the following rules further to amend the CENVAT Credit Rules,2004,
namely:-
1. (1) These rules may be called the CENVAT
Credit (Third Amendment) Rules, 2014.
(2) They shall come into force on the 1st day of April,
2014.
2. In rule 7 of the CENVAT Credit Rules, 2004, -
(i) in clause (b) for the words, “used in a
unit”, the words “used by one or more units” shall be substituted;
(ii) in clause (c) for the words, “used wholly
in a unit”, the words “used wholly by a unit” shall be substituted;
(iii) for clause (d), the following clause shall
be substituted, namely:-
“(d) credit of service tax
attributable to service used by more than one unit shall be distributed pro
rata on the basis of the turnover of such units during the relevant period
to the total turnover of all its units, which are operational in the current
year, during the said relevant period.”;
(iv) for Explanation 3, the following
shall be substituted, namely:-
“Explanation 3.- For the purposes of this rule, the ‘relevant period’
shall be,-
(a) If the assessee has turnover in the
‘financial year’ preceding to the year during which credit is to be distributed
for month or quarter, as the case may be, the said financial year; or
(b) If the assessee does not have turnover
for some or all the units in the preceding financial year, the last quarter for
which details of turnover of all the units are available, previous to the month
or quarter for which credit is to be distributed.”.
[F.No. 354 /246/ 2013-TRU]