GOVERNMENT OF INDIA
MINISTRY OF FINANCE
(DEPARTMENT OF REVENUE)

Notification No. 39 / 2007-Central Excise (N.T.)

New Delhi the 13th November, 2007,
Kartika 1929 Saka

G.S.R. (E).- In exercise of the powers conferred by section 37 of the Central Excise Act, 1944 (1 of 1944) and section 94 of the Finance Act, 1994 (32 of 1994), the Central Government hereby makes the following rules further to amend the CENVAT Credit Rules, 2004, namely:-

1. (1) These rules may be called the CENVAT Credit (Tenth Amendment) Rules, 2007.
   
   (2) They shall come into force on the date of their publication in the Official Gazette.
   
   
2. In the CENVAT Credit Rules, 2004, in rule 3, in sub-rule (5), after the second proviso, the following proviso shall be inserted, namely:-
   
   “Provided also that if the capital goods, on which CENVAT Credit has been taken, are removed after being used, the manufacturer or provider of output service shall pay an amount equal to the CENVAT Credit taken on the said capital goods reduced by 2.5 per cent for each quarter of a year or part thereof from the date of taking the Cenvat Credit;”.

[F.No. 267//01/2004-CX.8]
(Ashima Bansal)
Under Secretary to the Government of India

Note.- The principal rules were published in the Gazette of India, Part II, Section 3, sub-section (i) Extraordinary vide notification No. 23/2004-Central Excise (N.T.), dated the 10th September, 2004, G.S.R. 600 (E), dated the 10th September 2004, and subsequently amended by notification No. 35/2007-Central Excise (N.T.). dated the 14th September 2007, G.S.R. 596 (E), dated the 14th September, 2007