CENVAT credit-
1. (a) A manufacturer or producer of final products shall be allowed to take credit of:
i. the duty of excise specified in the First Schedule to the Central Excise Tariff Act:
ii. the duty of excise specified in the Second Schedule to the Central Excise Tariff Act, 1985, leviable under the Central Excise Act, 1944 in relation to the goods falling under sub-heading Nos. 2401.90, 2404.99, 5402.20, 5402.32, 5402.43, 5402.52, 5402.62, 8415.00, 8702.10, 8703.90, 8706.21 and 8706.39 of the said First Schedule:
iii. the additional duty of excise leviable under section 3 of the Additional Duties of Excise Act, 1978;
iv. the additional duty of excise leviable under section 3 of the Additional Duties of Excise Act, 1957; and
v. the additional duty leviable under section 3 of the Customs Tariff Act, 1975, equivalent to the duty of excise specified under clauses (i), (ii), (iii), & (iv) above, paid on any inputs or capital goods received in the factory on or after the first day of April, 2000.
(b) The CENVAT credit may be utilized for payment of any duty of excise on any final products manufactured by the manufacturer or for payment of duty on inputs or capital goods themselves if such inputs are removed as such or after being partially processed or such capital goods are removed as such.
2. notwithstanding anything contained in sub-rule (1)-
(a) Credit of duty in respect of inputs or capital goods produced or manufactured.
i. In a free trade zone and used in the manufacture of the final products in any other place in India; or
ii. By a hundred per cent export-oriented undertaking or by a unit in an Electronic Hardware Technology Park or Software Technology Parks are used in the manufacture of the final products in any place in India shall be restricted to the extent which is equal to the additional duty leviable on like goods under section 3 of the Customs Tariff Act, 1975 paid on such inputs:
(b) Credit in respect of-
i. The additional duty of excise under section 3 of the Additional Duties of Excise Act, 1978;
ii. The additional duty of excise under section 3 of the Additional Duties of Excise Act, 1957; and
iii. The additional duty under section 3 of the Customs Tariff Act, 1975, equivalent to the duty of excise specified under clause (A) & (B) above shall be utilized only towards payment of duty of excise leviable under the said Additional Duties of Excise Act, or under the said the said Additional Duties of Excise Act, on any final products manufactured by the manufacturer or for payment of such duty on inputs themselves if such inputs are removed as such or after being partially processed.
(c) CENVAT credit of the duty paid on the inputs shall not be allowed in respect of texturised yarn of polyesters falling under heading No. 54.02 of the said First Schedule, manufactured by an independent texturiser, that is to say, a manufacturer engaged in the manufacture of texturised yarn of polyesters falling under heading No. 54.02, who does not have the facility in his factory for manufacture of partially oriented yarn of polyesters falling under sub-heading No. 5402.42 of the said First Schedule.
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