Refund of CENVAT Credit – Northeast exemption – CENVAT Credit Rules Amended
DDT 585 dated 3rd April, 2007 , had reported the proposal to grant refund of the unutilized credit
Under NEIIPP, 2007, 100% excise duty exemption will be continued as at present on finished products made in the North Eastern Region. However, in cases, where the CENVAT paid on the raw materials and intermediate products going into the production of finished products (other than the products which are otherwise exempt or subject to nil rate of duty) is higher than the excise duties payable on the finished products, ways and means to refund such overflow of CENVAT credit will be separately notified by the M/O Finance.
Now they have notified this.
The CENVAT Credit Rules have been amended to insert a new Rule 5A to provide for refund of unutilised Cenvat Credit to units in the North Eastern States. This is akin to Rule 5 which gives refund of unutilised credit in respect of exports.
Notification No. – C. E. (N.T.), Dated April 25, 2007