9^th September, 2003.

Notification No. 65/2003 - Central Excise ( N. T.) 

            In exercise of the powers conferred by section 37 of the Central Excise Act, 1944 (1 of 1944), the Central Government hereby makes the following rules to amend the CENVAT Credit Rules, 2002, namely:-

1.             (1) These rules may be called the CENVAT Credit ( Seventeenth  Amendment) Rules, 2003.

                (2) They shall come into force on the date of their publication in the Official Gazette..        

2.             In the CENVAT Credit Rules, 2002,-

(a)  in rule 3 , in sub-rule (3),  for the third proviso, the following  proviso shall be substituted, namely:- 

                          “Provided also that 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 notifications No. 39/2001-Central Excise, dated the 31^st July, 2001 [G.S.R. 565 (E), dated the 31^st July, 2001], No.56/2002-Central Excise, dated the 14^th November, 2002 [G.S.R. 764(E), dated the 14^th November, 2002], No.57/2002-Central Excise, dated 14^th November, 2002 [G.S.R. 765(E), dated the 14^th November, 2002], notification of the Government of India in the  Ministry of Finance (Department of Revenue) No.56/2003-Central Excise, dated the 25^th June, 2003 [G.S.R. 513 (E), dated the 25^th  June, 2003], and No. 71/2003-Central Excise, dated the 9^th September, 2003 [G.S.R. 717 (E), dated the 9^th September, 2003], shall respectively be utilized only for payment of duty on final products, in respect of which exemption under the said notifications No.39/2001-Central Excise, dated the 31^st July, 2001,  No.56/2002-Central Excise, dated the 14^th November, 2002, No.57/2002-Central Excise, dated 14^th November, 2002,  No.56/2003-Central Excise, dated the 25^th June, 2003, and No.71/2003-Central Excise, dated the 9^th September, 2003, is availed of.”. 

                (b)  for rule 10, the following rule shall be substituted, namely:-

“RULE 10. Special dispensation in respect of inputs manufactured in factories located in specified areas of North East region, Kutch district of Gujarat, State of Jammu and Kashmir and State of Sikkim- Notwithstanding anything contained in these rules, where a manufacturer has cleared any inputs or capital goods, in terms of notifications of the Government of India in the  Ministry of Finance (Department of Revenue) No. 32/99- Central Excise, dated the 8^th July, 1999  [G.S.R. 508(E), dated the 8^th July, 1999] or No. 33/99- Central Excise, dated the 8^th July, 1999 [G.S.R. 509(E), dated the 8^th July, 1999] or No. 39/2001-Central Excise, dated the 31^st  July, 2001 [G.S.R.  565(E), dated the 31^st  July, 2001] or notification of the Government of India in the erstwhile Ministry of Finance and Company Affairs No.56/2002-Central Excise, dated the 14^th November, 2002  [G.S.R. 764(E), dated 14^th November, 2002]or notification No.57/2002-Central Excise, dated the 14^th November, 2002  [ GSR 765(E), dated the 14^th November, 2002] or notification of the Government of India in the  Ministry of Finance (Department of Revenue) No. 56/2003-Central Excise, dated the 25^th June, 2003 [G.S.R. 513 (E), dated the 25^th June, 2003] or 71/2003-Central Excise, dated the 9^th September, 2003 [G.S.R.717 (E), dated the 9^th September, 2003,  the CENVAT credit on such inputs or capital goods shall be admissible as if no portion of the duty paid on such inputs or capital goods was exempted under any of the said notifications.”.

G.S.Karki
Under Secretary to the Government of India

F.No. 356/56/2001-TRU

Note: The principal rules were published in the Gazette of India vide notification No. 5/2002-Central Excise (N.T.), dated the 1st March, 2002, vide number G.S.R. 144 (E), the 1st March, 2002 and were last amended vide notification No.57/2003-Central Excise (N.T.), dated the 25^th June, 2003,  vide number G.S.R. 516 (E), dated the 25^th June, 2003.