Amendent Provision regarding central excise and cenvat credit

Central Excise:

1.     Existing rate of 12% ad valorem will be @12.5% adv. from 01.03.2015 under the head CENVAT (Basic) duty. Levy of Primary Education cess and S&H Education Cess @ 2% and 1% respectively on the quantum of Cenvat (Basic) duty will be exempted from 01.03.2015. Other basic excise duty ad valorem with a few exceptions are not being changed.

2.       Daily Stock Account may be preserved in electronic form and every page of record shall be authenticated by means of a digital signature for which the Board may specify conditions, procedures etc.,

3.       If goods are directly sent to a job worker, the invoice will show the name and address of the manufacturer- as buyer and the details of job worker as the consignee  Such direct dispatch of inputs and capital goods to job worker without first bringing the articles to the manufacturer’s factory is allowed subject to certain conditions.

4.        In case of failure to furnish any return/statement in prescribed Format within the specified time limit, an amount @ Rs. 100/= per day subject to a maximum of Rs. 20,000/= for the period of delay in submission of each such return/statement will be required to be paid

5.       The expression ‘export’ employed in Rule 18 providing rebate of duty paid on export goods is substituted which means taking goods out of India to a place outside India and includes shipment of goods as provision or stores for use on board a ship proceeding to a foreign port or supplied to a foreign going aircraft.

6.       6. Existing Central excise registrants who have not submitted information regarding e-mail address and mobile number shall submit an amendment application provided in the website www. aces.gov.in within three months from 01.03.2015. Similarly the existing registrants who have not submitted Business Transaction Numbers like BIN No, IEC No, State Sales tax/VAT No/CST No, CIN, Service Tax Registration No etc., which have been issued prior to the filing of Central Excise Registration application, shall file in the Form and for the numbers subsequently obtained for amendment in the same website and within the same time limit

Cenvat Credit:-

7.     Time limit for return of processed Cenvat credit availed capital goods has been extended from 180 days to 2 years of their being sent to job worker.

 8.     Conditions for allowing Cenvat credit in respect of “input service” will be changed from 04.2015 as follows: -

In case where the whole or part of the service tax is liable to be paid by the service recipient on full or partial reverse charge mechanism, credit is allowed after the tax is paid;

In case the value of input service and the service tax as indicated in the documents specified under Rule 4A of the Service Tax Rules, 1994 is not made within 3 months from the date of such documents but taken credit, an assessee shall pay the exact amount of credit availed except an amount equal to the credit of tax that is paid by the manufacturer/service provider being service receiver.

The restriction in taking credit of duties of excise paid on ‘inputs’ and ‘capital goods’ as also service tax paid on ‘input service’ within 6 months of the date of issue of specified documents has been extended to One (1) Year.

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9.    Refund of Cenvat credit of exported goods to a manufacturer has been made subject to condition that the export goods are to be    taken out of India to a place outside India. [Rule 5 – clause (1A) inserted].

         10.  The barring/prohibitory conditions enumerated under Rule 6 have further been restricted by making inclusion of non-excisable  goods cleared for a consideration from the factory. Even if such non-excisable goods have no commercial consideration i.e. sale value, such value shall be determined by using reasonable means consistent with the principles of valuation contained in the Act and the Rules made there under.

         11.  The conditions of allowing Cenvat credit of duty on input or capital goods purchased from a first and second stage registered  dealer set forth in Rule 9(4), shall be equally applied in case of goods purchased from an ‘importer’. 12. Recovery of irregular Cenvat credit taken and penal provisions have been amended.