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The Cenvat credit rules 2004 enable a manufacturer under central excise to avail the credit on "Input Services" which are used directly or indirectly in relation to the manufacture of the final products and clearance of the same from the place of removal. A large proportion of the services consumed by manufacturers, therefore, would now be an input service. Similarly, the service provider is eligible for the CENVAT credit on the inputs and capital goods used for providing the output...

Cenvat Credit scheme is designed to avoid cascading effects but it has been seen over a period that the government has been diluting the basic philosophy of the rule by introducing many arbitrary restrictions. This has been done to augment revenue without increasing the tax rates. Paper writer has made an attempt to analyse the restrictions and raise some possibilities as under:  

1. Partially using motor vehicle for renting: Motor vehicles falling under chapter heading 8704...

Rebate: The provision to claim rebate is governed by Rule 18 of the Central Excise Rules,  

2001. As per the Rule, the rebate may be claimed for  

• Duty paid on inputs used in the manufacture of final products which are exported  
• Duty paid on final products which are exported  

An exporter may claim only one of the options out of two above.   

Generally second option is followed under which the manufacturer exporter can opt for rebate of excise duty paid on...

In budget 2015-16 One of the amendments made to rule 11(2) od central excise rules, 2002 by way of notification no. 8/2015 - CE (NT) dated 01.03.2015 applicable w.e.f 01.03.2015. The amendment as follows

“Provided also that if the goods are directly sent to any person on the direction of the registered dealer, the invoice shall also contain the details of the registered dealer as the buyer and the person as the consignee, and that person shall take CENVAT credit on the basis of the...