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The CENVAT Credit Rules have been amended vide Notification Nos. 01/2016- CX (N.T) and 02/2016- CX (N. T), both Dated: February 03, 2016 as follows:

a) For the purpose of definition of Input Services, sales promotion would include services by way of sale of dutiable goods on commission basis.

b) The condition of allowing only 85% of CENVAT credit of the additional duty of customs paid under section 3(1) of the Customs Tariff Act, on ships, boats and other floating structures for breaking up falling under tariff item 8908 00 00 of the First Schedule to the Customs Tariff Act has been done away with.

c) It has been provided that CENVAT Credit of any duty specified in Rule 3(1) will not be utilised for payment of the Swachh Bharat Cess levied under sub-section (2) of section 119 of the Finance Act, 2015.


Notification No. 01/2016-Central Excise (N.T.)

 New Delhi, the Dated: 1st February, 2016

G.S.R.132(E).- In exercise of the powers conferred by Section 37 of the Central Excise Act, 1944 (1 of 1944), the Central Government hereby makes the following rules further to amend the CENVAT Credit Rules, 2004, namely:-

1. Short title and commencement.- (1) These rules may be called the CENVAT Credit (First Amendment) Rules, 2016.

(2) They shall come into force with effect from the 1st day of March, 2015.

2. In the CENVAT Credit Rules, 2004, in rule 3, in sub-rule (1), in clause (vii), the proviso shall be omitted;

[F. No. 6/14/2014-CX.I (Pt.)]

(Santosh Kumar Mishra)

Under Secretary to the Government of India

Note – The principal rules were published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R 600(E) dated the 10th September, 2004 {Notification No. 23/2004 Central Excise (N.T) dated the 10th September, 2004} and was last amended vide number G.S.R. 1028(E), dated the 31st December, 2015 {Notification No. 27/2015 -Central Excise (N.T.), dated the 31st December, 2015}.

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  1. N.K.Bajpai says:

    Some years ago,when I was serving in the customs & Central excise department,Shri M.G.Abrol, then Member ( Customs) had directed that the gist of an amending notification would be stated in the form of a footnote which, though not part of the statutory notification,would serve the purpose of explaining the rationale for the public.Apparently, either this practice has been discontinued or there is an omission in the present case.

  2. viji says:

    it would be easier to understand if all notification contain one line at the end “effect of amendment” which explains the meaning / crux / impact of the amendment. This is followed in all DGFT notifications. will be helpful if cbec also follows the same pattern.

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