Rule 6 goes for first amendment after budget – L,M,N replaced with M,N,P
In our Budget analysis articles " ABC of Rule 6 - what is "P"? by R. Raghavendra Rao , it was pointed out that :
(iii) the amount attributable to input services used in or in relation to manufacture of exempted goods or provision of exempted services = (M/N) multiplied by P, where L denotes total value of exempted services provided plus the total value of exempted goods manufactured and removed during the financial year, M denotes total value of taxable and exempted services provided, and total value of dutiable and exempted goods manufactured and removed, during the financial year, and N denotes total CENVAT credit taken on input services during the financial year;
should read as:
(iii) the amount attributable to input services used in or in relation to manufacture of exempted goods or provision of exempted services = (M/N) multiplied by P, where M denotes total value of exempted services provided plus the total exempted goods manufactured and removed during the financial year, N denotes total value of taxable and exempted services provided, and total value of dutiable and exempted goods manufactured and removed, during the financial year, and P denotes total CENVAT credit taken on input services during the financial year;
The good Board has reacted rather quickly, they amended the above rule as suggested, by replacing L,M and N with M,N and P by issuing a corrigendum on 5 th March. This corrigendum was kept a top secret and not made available to the public.
But, as the Board is badly in need of a proof reader, the amendment which should have been made to Notification 10/2008 CE (NT) dated 1 st March 2008 has been made to Notification 10/2007 CE (NT) dated 1 st March 2008. One can only wish that at least the next amendment is carried correctly. As the amendment is made to Notification No. 10/2007 and not 10/2008 as required, this means that the error is not really rectified. As of now, the Notification No. 10/2008 remains unchanged and maybe the Board has to bring in one more corrigendum to state that it is 10/2008 and not 10/2007 which is amended.
Moral of the story: Don't hide your notifications and their amendments – you will land up in more troubles.
Corrigendum Dated 5th March, 2008