|
Regarding Central Excise - Refund of Unutilized Credit of Additional Duty
of Excise (Goods of Special Importance) in terms of rule 5 of CENVAT Credit
Rules, 2002
Central
Excise Circular No. 701 dated 12th March 2003
I
am directed to say that representations have been received expressing doubt
whether unutilized CENVAT Credit of Additional Duty of Excise levied under
Additional Excise Duty (Goods of Special Importance) [AED (GSI)] Act, 1957 paid
on the fabrics used for the manufacture and export of ready made garments can be
refunded in terms of rule 5 of CENVAT Credit Rules, 2002 (hereinafter referred
as to the said rules). A view has been expressed that refund of such credit can
not be granted as in the first place, credit of AED (GSI) paid on fabrics is not
admissible in view of restriction clause in rule 3 of the said rules on
utilization of such credit and the fact that AED (GSI) is not leviable on
finished product i.e. ready made garments.
2.
Board has examined the matter. It is observed that as per rule 3 of the
said rules, CENVAT credit of AED (GSI) paid on fabrics may be taken even though
the manner of utilization of such credit is restricted in terms of sub rule (6).
Incidentally this restriction is also removed vide Notification No.13/ 2003-CE
(NT) dated the 1st March 2003. Since the admissibility of credit of
such duty cannot be disputed in view of specific provision of the said rule 3,
the refund of unutilized credit of such duty is admissible under rule 5 of the
said rules.
3.
Accordingly, it is clarified that the refund of AED (GSI) shall be
allowed under rule 5 of CENVAT Credit Rules, 2002 regardless of the fact that
the said duty is not leviable on the finished product. Pending cases if any, may
be decided accordingly.
4.
Trade and field formations may please be informed suitably.
5.
Receipt of the same may please be acknowledged.
6.
Hindi version will follow.
|