|
The Central Government has amended CENVAT Credit Rules, 2004 requiring only certain manufacturers of specified excisable goods to file a Declaration furnishing information about principal inputs required for manufacture of finished excisable goods once in a year by 30th April each year. Such declaration is not required to be filed by all manufacturers but only by those manufacturing certain specified commodities who have also paid excise duty of Rs. 1 crore and above from account current in preceding financial year. Such manufacturers are also required to submit a monthly return giving information about the receipt and consumption of declared principal inputs and the corresponding quantity of final products manufactured by them.
In the past, major legal and procedural relaxations have been given regarding availment of Cenvat credit which is allowed on invoices issued by the manufacturers as well as 1st and 2nd stage dealers. Earlier, such invoices issued by manufacturers were admissible but as a measure to help the trade, the facility of issuing invoices was extended to the first stage and second stage dealers. The declarations made by the recipient factories for availment of input duty credit based on invoices is generally accepted and no routine checks are undertaken. No permission/ intimation is required for availment of Cenvat credit scheme. There is also provision for condonation of procedural violations.
Considering the quantum of availment of Cenvat credit, it is felt necessary that some data of principal inputs and their consumption vis-a-vis the finished goods is obtained. Such information will facilitate selection of units for audit and save the assessees from routine queries and checks.
As the requirement of filing the Declaration and the monthly return is restricted only to those assessees manufacturing certain specified commodities who have paid annual excise duty of Rs. 1 crore and above from account current in the preceding financial year, only such large industrial units which are estimated to be less than 3000 as against the total registered units exceeding one lakh are required to file such declaration and return.
|
