Cenvat Credit Rules, 2004 have been subject to frequent and varied changes over the time. Following Table captures the amendments made in Cenvat Credit Rules, 2004 in 2015.
Amendments in Cenvat Credit Rules in 2015 at a Glance
Nature of Amendment
Notification 6/2015-CE(NT) dated 1.3.2015
(a) The Cenvat Credit in respect of inputs may also taken on receipt of the inputs in the premises of the job worker, where in case of goods are sent directly to the job worker on the direction of the manufacturer or the provider of output service.
(b) Time limit for taking credit on inputs and input services from the present 6 months to one year from the date of invoice.
The Cenvat Credit in respect of capital goods may also taken on receipt of the capitals goods in the premises of the job worker, where in case of goods are sent directly to the job worker on the direction of the manufacturer or the provider of output service.
In case of Cenvat Credit on inputs may be availed even if inputs are directly sent to the premise of the job worker. The goods sent to the job worker can be moved to another job worker as well, however it shall be assured that the goods are received back by the manufacturer within 180 days from the date of sending such goods.
In case, the goods are sent to job worker premises without first receiving into factory of the manufacturer, then 180 days shall be considered from the date of receipt of goods by job worker.
Time limit for the return of capital goods from job worker enhanced from the present 6 months to two years.
Cenvat credit of Service Tax paid under partial reverse charge by the service receiver without linking it to the payment of service provider allowed (earlier, eligible only if payment of provision of service had been made to the service provider)
'Export goods' defined to mean goods which are to be taken out of India to a place outside India
Provision relating to reversal of Cenvat credit presently applicable to exempted goods /services made applicable to non-excisable goods i.e., exempted goods or final products shall include non- excisable goods cleared for a consideration from factory.
Value of non-excisable goods shall be invoice value or if invoice value is not available, by using reasonable means in terms of Excise Act.
Rule 9 (4) made applicable to importer dealers issuing an invoice on which Cenvat credit can be taken
Restrictions extended to importer
Rule substituted for -
Recovery of Cenvat credit taken wrongly but not utilized. Section 11A of Central Excise /Section 73 of Finance Act, 1994 to apply for effecting recovery.
Recovery of Cenvat Credit taken and utilized wrongly or erroneously refunded with interest and sections 11A and11AA of Central Excise/Sections 73 and 75 of Finance Act, 1994 to apply.
All credits taken during month shall be deemed to have been taken on last day of month and utilization thereof in preference of opening balance, credit admissible taken during the month and then credit inadmissible taken during the month utilized thereafter.
Penalty to be in terms of section 11AC (1) (a) or (b) of Central Excise Act, 1944 or section 76(1) of Finance Act, 1994
Penalty to be in terms of section 11AC (1) (c) or (d) or (e) of Central Excise Act, 1994.
Penalty to be in terms of section 78(1) of the Finance Act, 1994
Notification No. 12/2015-CE (NT) dated 30.04.2015
Proviso substituted in clause (b) to allow credit of education cess and secondary & higher education cess paid on inputs or capital goods received in factory on or after 1.3.2015 or paid on capital goods received in factory in Financial Year 2014-15 or paid on input service after 1.3.2015 for payment of excise duty leviable under First Schedule of CETA
Notification No. 14/2015-CE(NT) dated 19.05.2015
In clause (i) and second proviso, 'seven percent' has been inserted / substituted in place of six percent due to change in Service Tax rate from 12% to 14% w.e.f. 1.6.2015.
Notification No. 21/2015-CE(NT) dated 07.10.2015
Clause (ix) has been inserted to add 'ethanol produced from molasses generated from cane crushed' w.e.f. 01.10.2015 onwards for supply to the public sector oil marketing companies for the purpose of blending with petrol (in terms ofNotification No. 12/2012-CE dated 17.03.2012).
Notification No. 22/2015-CE(NT) dated 29.10.2015
Proviso added in rule 3(7)(b) to allow utilization of Cenvat Credit of Education Cess and Secondary and Higher Education Cess paid on capital goods or inputs or input services on or after 01.06.2015 towards payment of Service Tax on output service.