Transitional provision of CENVAT credit-
1)Â Â Â Â Any amount of credit earned by a manufacturer under rules 57A, 57B or 57Q as they existed prior to 1st day of April, 2000 and remaining unutilized on that day shall be allowable as CENVAT credit to such manufacturer under these rules, and be allowed to the utilized in accordance with these rules.
2)Â Â Â Â A manufacturer who opts for exemption from the whole of the duty of excise leviable on goods manufactured by him under a notification based on the value or quantity of clearances in a financial year, and who has been availing of the credit of the duty paid on inputs before such option is exercised, shall be required to pay an amount equivalent to the credit, if any, allowed to him in respect of inputs lying in stock or used in any finished excisable goods lying in stock on the date when such option is exercised and after deducting the said amount from the balance, if any, lying in his credit, the balance, if any, still remaining shall lapse and shall not be allowed to be utilized for payment of duty on any excisable goods, whether cleared for home consumption or for export.
3)Â Â Â Â (a) An independent texturiser who has availed of the credit of duty paid on inputs used for manufacture of texturised yarn of polysters falling under heading No. 54.02 of said First Schedule shall be required to pay an amount equivalent to the credit, if any, allowed to him in respect of such inputs lying in stock, or used in the manufacture of texturised yarn of polysters falling under heading No. 54.02 of the said First Schedule lying in stock as on the 1st day March, 2000, or thereafter.
(b) An independent texturised who manufacturers texturised yarn of polysters falling under heading No. 54.02, and also other goods; shall be allowed to take CENVAT credit of duty paid on inputs used for the manufacture of such other goods, lying in stock as on the 1st day of March, 2000 or received in his factory on or after the 1st day of March, 2000.
The transitional provisions of Rule 57AG ensure that outstanding MODVAT credits pertaining to both inputs and capital goods are creditable in the CENVAT account for utilization on or after 1/4/2000.
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