Cenvat rules for finished excisable goods eased

NEWDELHI: The Centre has decided to exempt most industrial units from filing the annual declaration about principal inputs used by them for manufacture of finished excisable goods.

The revenue department has amended the Cenvat Credit Rules ’04 accordingly. Under the new rules, only large-scale manufacturers of specified excisable goods, who have also paid an annual excise duty of Rs 1 crore and above in the preceding financial year, will have to file returns by April 30 each year.

The ministry estimates that because of the amendment, only 3,000 units out of over 1 lakh units registered, will have to file the declarations and returns.

These manufacturers will also be required to submit a monthly return, providing information on receipt and consumption of declared principal inputs and the corresponding quantity of final products manufactured by them.

In the past, the revenue department had brought in legal and procedural relaxations for availment of Cenvat credit, including those which have been allowed on invoices issued by manufacturers.

Procedures have also been simplified for first and second stage dealers, who have been allowed to issue invoices.

Considering the quantum of availment of Cenvat credit, the department felt it was necessary that some data on principal inputs and their consumption vis-à-vis finished goods be obtained.

Such information will facilitate selection of units for audit and save the assessees from routine queries and checks.

The revenue department has also said the declarations made by recipient factories for availment of input duty credit based on invoices is generally accepted and no routine checks are undertaken. No permission or intimation is required for availment of the Cenvat credit scheme. There is also provision for condonation of procedural violations.