Saturday, 26 May 2012

CG allows CENVAT Credit if assessee paid Excise Duty on cutting, slitting and printing of aluminium foils


[TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART-II, SECTION 3,
SUB-SECTION (i)]

GOVERNMENT OF INDIA
MINISTRY OF FINANCE 
(DEPARTMENT OF REVENUE)

Notification No. 24/2012 - Central Excise (N. T.)

New Delhi, the 19th April, 2012

            G.S.R. (E) . -In exercise of the powers conferred by section 5B of the Central Excise Act, 1944 (1 of 1944), the Central Government hereby orders that where an assessee has paid duty of excise on  the process of cutting, slitting and printing of aluminium foils (hereinafter referred to as final product), falling under heading 7607 of the First Schedule to the Central Excise Tariff Act, 1985 ( 5 of 1986), the CENVAT credit taken or utilised, of the duty or tax or cess paid on inputs, capital goods and input services used in the making of the said final product, shall not be required to be reversed, notwithstanding that the process of cutting, slitting and printing of aluminium foils have been held as not amounting to manufacture by the Central Excise and Service Tax Appellate Tribunal by its order in Appeal No. 3181 of 2010 in the case of M/s Printo India Graphics (P) Ltd. Vs CCE, Delhi and upheld by the Supreme Court in Civil Appeal No. 8533 of 2011, subject to the following conditions, namely:-

(a) the said non-reversal shall be allowed only for the CENVAT credit taken upto the 15th  of March, 2012.
(b) the said non-reversal shall be allowed only when excise duty has been paid on removal of the said final product.
(c) the said assessee shall not prefer a claim of refund of the excise duty paid by him on the said final product:
           
            Provided that the CENVAT credit, if any, taken by the buyer of the said final product, of the excise duty paid by the said assessee on the said final product made and cleared up to the 15th March, 2012 shall not be required to be reversed. 

[F.No.4/2/2012-CX.1 Pt.]


(Madan Mohan)
Under Secretary to the Government of India.

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