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Regarding CENVAT Credit Involved on Stock of Light Diesel Oil as on
28.2.2003
Central
Excise Circular No. 704 dated 31st March 2003
I
am directed to refer to the doubts raised regarding availability of CENVAT
credit involved on stock of LDO as on 28.2.2003.
2.
In this context, it is mentioned that in the Budget 2003-04, with effect
from 1.3.2003, Cenvat credit facility in respect of LDO has been withdrawn. The definition
of input in the CENVAT Credit Rules, 2002 has been accordingly amended so as
to mean all goods, except LDO, HSD and motor spirit, used in or in
relation to the manufacture of final products, whether directly or
indirectly and whether contained in the final product or not, within the factory
of production. Thus, prior to 1.3.2003, LDO was a specified input, only if used
in the manufacture of final products on or before 28.2.2003. It is, therefore,
clarified that the existing stock of LDO, as on 28.2.2003, would not be eligible
for the purpose of availing Cenvat credit. However, if any, Cenvat credit had
been availed, in terms of rule 3 of the aforesaid Rules, on LDO, lying in stock
as on 28.2.2003, the same is required to be reversed by the assessee.
3.
The field formations may be advised accordingly.
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