CHENNAI II COMMISSIONERATE
692 MHU COMPLEX NANDANAM
CHENNAI-35
TRADE NOTICE: 18 / 2003. Dated: 29
-04-2003.
Sub : 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 – regarding.
*******
Representations have
been received by the Board 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.
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.
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.
The contents of this Trade Notice may please be brought to
the notice
of
all the constituent members of your Association and the manufacturers of
textile and textile articles in particular.
(Authority: Board's circular No. Circular No.
701/17/2003-CX dated 12.03.2003
from F.No. 267/11/2003-CX.8)
( Issued from File C.No. IV/16/217/2003
CX policy.)
-Sd-
(K.R.UDAY
BHASKAR)
ADDITIONAL
COMMISSIONER (TECH)
To
Trade
& Department.( As per Mailing List )