New North-East Notification – Now recognized in CENVAT Credit Rules
On 25-4-2007, the Government issued Notification No. 20/2007-CE, exempting goods in the North Eastern states and Sikkim. On 3rd August, 2007 the Government has issued a notification incorporating this Notification No. 20/2007 in the CENVAT Credit Rules.
As per Rule 12 of the CENVAT Credit Rules, CENVAT Credit is available to goods received from the North Eastern States covered under various exemption notifications starting from Notification No. 32/99 to Notification 56/2003. Now Notification No. 20/2007 is also added to the list of notifications.
As per Rule 12A(1), LTUs are allowed to remove inputs on which credit has been taken, to their other units except units availing the various notifications for the North Eastern States. Now Notification No. 20/2007 is added to this list also.
As per Rule 12A(4), LTUs are allowed to transfer CENVAT Credit from one unit to another, except from the units availing the North East exemption notifications. Now Notification No. 20/2007 is added to this list also.
But these additions are done only on 3.8.2007 that is three and half months after Notification No. 20/2007 had been issued. Does it mean that during the last three months
1. Credit was not available if inputs were received from units availing Notification No. 20/2007?
2. Could LTUs remove inputs to units availing Notification No. 20/2007?
3. Could LTUs transfer CENVAT Credit from units availing the above notification?
Notification No. , Dated August 3, 2007