Three Year Amortisation of
Service Tax for Spectrum Licence Allowed, One Year in Sale Cases
[Central Excise Notification No. 24 (Non Tariff) dated 13th April 2016]
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 (Fifth
Amendment) Rules, 2016.
(2) They shall
come into force on the date of their publication in the Official Gazette.
2. In the
CENVAT Credit Rules, 2004 (hereinafter referred to as the said rules), in rule
4, in sub-rule (7), -
(i) in the fifth proviso, after the words “documents specified in
sub-rule (1) of rule 9”, the words “except in case of services provided by
Government, local authority or any other person, by way of assignment of right
to use any natural resource” shall be inserted;
(ii) for the sixth, seventh and eighth proviso, the following
provisos shall be substituted, namely :-
“Provided also that CENVAT Credit of Service Tax paid
in a financial year, on the onetime charges payable in full upfront or in
instalments, for the service of assignment of the right to use any natural
resource by the Government, local authority or any other person, shall be
spread evenly over a period of three years:
Provided also that where the manufacturer of goods or
provider of output service, as the case may be, further assigns such right
assigned to him by the Government or any other person, in any financial year,
to another person against consideration, such amount of balance CENVAT credit
as does not exceed the service tax payable on the consideration charged by him
for such further assignment, shall be allowed in the same financial year.”.
3. In the said
rules, in rule 6, in sub-rule (1), in Explanation 3, after the figures “1994”,
the words “provided that such activity has used inputs or input services” shall
be inserted.
[F. No. 334/8/2016 -TRU]