Textile Products Falling Under Chapter 55 - CBEC Clarification
DOUBTS have been raised as to whether the benefit of proportionate Cenvat credit as clarified by Circular 845/03/2006-CX dated 1.02.2007 would be available to textile items of heading 5508, 5509, 5510, 5511, 5512, 5513 and 5514 since a reference to these headings was omitted in Notification No.29/2004-CE dated 9th July, 2004 vide Notification No.11/2009-CE dated 7th July,2009. The Circular provided for taking proportionate credit at the end of the month.
Board goes on a complicated explanation and states,
The non -mention of these headings in notification No.29/2004-CE has no bearing on the availability of Cenvat credit and applicability of Circular no. 845/3/2006.
It is hereby clarified that the benefit of proportionate credit would continue to be available to textile items falling under the aforementioned headings.
Please see , 1158 and 1146
CBEC Circular No. 948/09/2011-CX.,Dated: July 05, 2011