Confusion Worse Confounded?
LOOK at these Conditions in the first notification 34/2015-CE.
Provided that the said excisable goods are manufactured from inputs on which appropriate duty of excise leviable under the First Schedule to the Central Excise Tariff Act or additional duty of customs under section 3 of the Customs Tariff Act, 1975 (51 of 1975) has been paid and no credit of such excise duty or additional duty of customs on inputs has been taken by the manufacturer of such goods (and not the buyer of such goods), under the provisions of the CENVAT Credit Rules, 2004.".
So, the conditions are, at the cost of repetition:
1. Inputs should be duty paid
2. No credit can be taken on the duty paid on these inputs, and
3. The Credit should not be taken by the manufacturer - not the buyer.
This is an amendment to Notification No. 30/2004-CE, which grants full exemption to certain goods in the textile industry. When full exemption is given the very condition that no credit should be taken is unnecessary, if the final products are exempted, there is no question of taking credit on the inputs. But now they want the inputs to be duty paid. Should all the inputs be duty paid or only the major input? Who will decide that? Are they virtually denying the exemption by insisting on duty payment for inputs? And what is this clarification that the credit should not be taken by the manufacturer and not the buyer? When the goods are exempted, where is the question of the buyer taking credit?
Excise Tariff or Central Excise Tariff?
In the Notifications in two places it is mentioned, First Schedule to the Central Excise Tariff Act and in four places it is First Schedule to the Excise Tariff Act - the ‘central' is missing.
Is the Act, the Central Excise Tariff Act or simply the Excise Tariff Act. You should be sure of your Act.