OFFICE OF THE COMMISSIONER OF CENTRAL EXCISE : MUMBAI-III

VARDAAN TRADE CENTRE, 4TH FLR, ROAD NO. 16, W.I.E., THANE 400 604 TEL : 2 58 00 617

 

TRADE NOTICE NO.  15  Gen( 15   )/C.Ex./M-III/2005  DATED        1.7  .2005

 

 

Subject: Clarification with regard to valuation of goods-regarding.

 

 

Attention of the Trade is invited to Board’s C.No. 643/34/2002-CX dated 1.7.2002  and Trade Notice No.12/Gen(12)/C.Ex/M-III/2005 dated 30.05.2005 issued by this Commissionerate on the basis of Board’s Circular No. 813/10/2005-CX dated 25th April, 2005  wherein  clarification was issued on valuation in certain situations, inter alia in respect of valuation of capital goods or inputs removed as such from the factory of the manufacturer. It was clarified that in such situations, the provisions of rule 3(5) of CENVAT Credit Rules, 2004 shall apply.

 

2.         Consequent to that, a point has been raised as to whether the provisions of rule 3(5) of CENVAT Credit Rules, 2004 shall apply to situations when the provisions of sub-rule (1C) of rule 57AB of Central Excise Rules, 1944, or rule 3(4) of CENVAT Credit Rules, 2001 or rule 3(4) of CENVAT Credit Rules, 2002 were in force.

 

3.         The matter has been examined. As per sub-rule (1C) of rule 57AB of Central Excise Rules, 1944, or rule 3(4) of CENVAT Credit Rules, 2001, or rule 3(4) of CENVAT Credit Rules, 2002 upto 28.02.2003, in case a manufacturer removes inputs or capital goods as such, he was required to pay an amount equal to the duty of excise leviable on such goods at the rate applicable on the date of such removal and on the value determined under section 4 or section 4A, as the case may be. As per notification No. 13/2003-CE (NT) dated 1.3.2003, rule 3(4) of CENVAT Credit Rules, 2002 was amended to provide that in such situations, the manufacturer shall pay an amount equal to the credit availed in respect of such inputs or capital goods. This position remains unchanged in rule 3(5) of CENVAT Credit Rules, 2004.

 

 

4.         It was in this context that the clarification was issued vide Trade Notice No.12/Gen(12)/C.Ex/M-III/2005 dated 30.05.2005 based on Circular No. 813/10/2005-CX dated 25th April, 2005 to say that in case, the inputs or capital goods are removed as such, the provisions of rule 3(5) of CENVAT Credit Rules, 2004 shall be applicable. The situation prior to 1.3.2003 {when rule 57AB(1C) of Central Excise Rules, 1944, or rule 3(4) of CENVAT Credit Rules, 2001 or un-amended rule 3(4) of CENVAT Credit Rules, 2002 was in force} shall continue to be governed by the provisions as in force at the relevant time.

 

 

5.        All trade associations are requested to bring the contents of this Trade Notice to the notice of their member manufacturers in particular and the trade in general.

 

                                                                                                            sd/-

                                                                                            (K.K. SHRIVASTAVA)     

                                     COMMISSIONER                                                                    

                                    CENTRAL EXCISE : MUMBAI-III

F.No.V.Gen(8)5/2005/M-III

Thane, the  

 

Copy to : All Trade Associations as per Mailing List / Member of RAC (OS) & SSI by

                name / All Chambers of Commerce/Press Information Bureau.

               All Additional Commissioner / Joint Commissioners /

               All Divisional Deputy/Assistant Commissioners (with 10 spare copies) /

               Assistant Commissioner (Audit) / Brand Rate Unit / P.R.O. (Notice Board).

               Office of the Chief Commissioner of Central Excise & Custom, Mumbai, Zone II.

 

(Based on Board’s Circular No. 816/13/2005-CX issued under F.No. 6/18/2003-CX.1              dated 16th June, 2005)