The erstwhile MODVAT credit scheme has been replaced by new CENVAT credit scheme, with effect from 1-4-2000. Accordingly, the old MODVAT Rules 57A to 57VV in the Central Excise Rules, 1994 have been replaced by new CENVAT Rules 57AA to 57AK. The new CENVAT Rules are discussed as follows:-
Definitions-
For the purpose of this section-
a) “Capital goods” means-
i. All goods falling under chapter 82, Chapter 84, chapter 85, chapter 90, heading No. 68.02 and sub-heading No. 6801.10 of the first Schedule to the Central Excise Tariff Act, 1985;
ii. Components, spares and accessories of the goods specified
iii. Moulds and dies;
iv. Refractories and refractory materials;
v. tubes and pipes and fittings thereof, used in the factory, and
vi. Pollution control equipment, used in the Factory of the manufacturer of the final products.
b) “Exempted goods” means goods which are exempt from the whole of the duty of excise leviable thereon, and includes goods which are chargeable to “Nil” rate of duty;
c) “Final products” means excisable goods manufactured or produced from inputs, except matches;
d)“Input” means all goods except high speed diesel oil and motor spirit, commonly known as petrol, used in or in relation to the manufacture of final products whether directly or indirectly and whether contained in the final product or not and includes accessories of the final products cleared along with the final product, goods used as paint, or as packing material, or as fuel, or for generation of electricity or steam used for manufacture of final products or for any other purpose within the factory of production, and also includes lubricating oils, greases, cutting oils and coolants.
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