| Date: |
24-12-2002
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| Notification No: |
Central Excise Circular No 683/2002
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| Issuing Authority: |
Central Excise
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| Type: |
Circular
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| File No: |
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| Subject: |
Regarding Diversion of Credit taken on Inputs for Exempted Products under the North-East Notifications for Payment of Central Excise Duty on Other Products
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Regarding Diversion of Credit taken on Inputs for Exempted Products under
the North-East Notifications for Payment of Central Excise Duty on Other
Products
Central
Excise Circular No. 683 dated 24th December 2002
Notification
Nos. 61/2002-CE and 42/2002-CE (NT) both dated 23.12.2002 have been issued
to provide that:
1.
The CENVAT credit of the duty paid on the inputs used in the manufacture
of final products cleared after availing of the exemption under the notification
numbers 32/99-CE and 33/99-CE, both dated the 8.7.1999 [referred to as �North
East notifications�] shall be utilized only for payment of duty on final
products cleared after availing of the exemption under the said notifications;
and the refund allowable under the North East notifications shall not exceed the
amount of duty paid less the amount of the CENVAT credit availed of, in respect
of the duty paid on the inputs used in or in relation to the manufacture of
goods cleared under the corresponding exemption notification.
2.
Notification No. 42/2002-CE (NT) seeks to disallow diversion of the
credit taken on inputs used for manufacture of products exempted under the said
North East notifications for payment of central excise duty on other products.
Such diversion would imply payment of a greater amount of duty through
account-current on the products exempted under the said North East notifications
and thereby resulting in unintended benefit of higher amount of refund.
Notification No. 61/2002-CE seeks to disallow such excess refund.
3.
Trade may be suitably informed.
4.
Receipt of this circular may be acknowledged.
5.
Hindi version follows.
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