Power to Impose Restrictions under Rule 12AAA
of Cenvat Credit Rules, 2004
[Central Excise Notification No. 15 (Non Tariff) dated 21st March 2014]
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, 2004, namely:-
1. (1) These rules may be called the CENVAT Credit (Fifth
Amendment) Rules, 2014.
(2) They shall
come into force on the date of their publication in the Official Gazette.
2. (1) For rule
12AAA of the CENVAT Credit Rules, 2004, the following shall be substituted, namely :-
“12AAA. Power to impose restrictions in certain types
of cases.- Notwithstanding anything contained in these rules, where the Central
Government, having regard to the extent of misuse of CENVAT credit, nature and
type of such misuse and such other factors as may be relevant, is of the
opinion that in order to prevent the misuse of the provisions of CENVAT credit
as specified in these rules, it is necessary in the public interest to provide
for certain measures including restrictions on a manufacturer, first stage and
second stage dealer or an exporter, may by notification in the Official
Gazette, specify the nature of restrictions including restrictions on
utilization of CENVAT credit and suspension of registration in case of a dealer
and type of facilities to be withdrawn and procedure for issue of such order by
the Chief Commissioner of Central Excise.
Explanation.- For the purposes
of this rule, it is hereby clarified that every proposal initiated in terms of
the procedure specified under notification no. 05/2012-CE (N.T.) dated the 12th
March, 2012 published in the Gazette of India, Part II, Section 3, Sub-section
(i) vide number G.S.R. 140(E), dated the 12th March, 2012, which is pending,
shall be treated as initiated in terms of the procedure specified under this
rule and shall be decided accordingly.‖
F. No. 267/13/2013-CX.8