CBEC Clarifies Excise Debit on Reward
Scrip will give “Duty Paid” Statutes Goods
No Duty under Cenvat
Rule 6(3) Applicable
[CBEC Circular No. 973 dated 4th September 2013]
Subject:
Reversal of amount under Rule 6(3) the CCR, 2004 on domestic clearances under
Notification Nos.29/2012-CE, 30/2012-CE, 31/2012-CE, 32/2012-CE and 33/2012-CE
all dated 9th July, 2012.
Central
Government has issued notifications no 29/2012-CE, 30/2012-CE, 31/2012-CE,
32/2012-CE and 33/2012-CE all dated 9th
July, 2012 to exempt certain manufactured goods when cleared against the
specified duty credit scrip issued to an exporter. The holder of the said
scrip, to whom the goods are cleared, is entitled to avail Cenvat
credit of duties of excise, against the amount debited in the said scrip as per
one of the conditions of the notification.
2) Representations have been
received from the trade that such clearances are being treated as clearances of
exempted goods and payment of amount under rule 6(3), as applicable, of the Cenvat Credit Rules, 2004 is being demanded. Trade has
requested that a clarification be issued that these goods be treated as equivalent
of duty paid goods so that such payment of amount under rule 6(3) is not
required to be made.
3) The matter has been examined.
One of the conditions for availing of these exemptions is that duties leviable, but for these exemptions, shall be debited in or
on the reverse of said scrip. The scrip holder is also permitted to avail of cenvat credit of the duties debited in the scrip. In view
of these provisions it has been decided that such debit of duty in these scrips shall be treated as payment of duty for the purpose
of determining the applicability of rule 6 of the Cenvat
Credit Rules, 2004. Therefore, it is
clarified that in respect of goods cleared availing the benefit of any of
notifications no. 29/2012-CE, 30/2012-CE, 31/2012-CE, 32/2012-CE and 33/2012-CE
all dated 9th July, 2012, payment of amount under rule 6(3) of the Cenvat Credit Rules, 2004 is not applicable.
4) Field formations may be
informed accordingly.
F. No. 267/48/2012-CX.8