9. Transitional provision.-

(1) Any amount of credit earned by a manufacturer under the CENVAT Credit Rules, 2001, as they existed prior to the 1 st day of March, 2002 and remaining unutilised on that day shall be allowable as CENVAT credit to such manufacturer under these rules, and be allowed to be utilised in accordance with these rules.

(2) 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 taking CENVAT credit on inputs before such option is exercised, shall be required to pay an amount equivalent to the CENVAT credit, if any, allowed to him in respect of inputs lying in stock or in process or contained in final products 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.

Rule 9A.

Transitional provisions for Textile and Textile Articles.-

(1) A manufacturer, producer, first stage dealer or second stage dealer of goods falling under Chapters 50 to 63 of the First Schedule to the Tariff Act [OLD -A manufacturer, producer, first stage dealer or second stage dealer of yarn or fabrics falling under Chapter 50, 51, 52, 53, 54, 55, 58, 59 or 60 of the First Schedule to the Tariff Act ] shall be entitled to avail credit equal to the duty paid on inputs of such finished product, lying in stock or in process or contained in finished products lying in stock as on 31st day of March, 2003 upon making a written declaration of the description, quantity and value of the stock of inputs (whether lying in stock or in process or contained in finished products lying in stock) and subject to availability of the document evidencing actual payment of duty thereon.

(In sub-rule (1) bold words and figures has been substituted vide Ntf. No. 43/2003-CE(N.T.), Dt. 12/05/2003 )

(Changes in sub-rule (1) pl. refer NTF. NO. 34/2003-CE(N.T.), DT. 10/04/2003)

(2) Notwithstanding anything contained in sub-rule (1), the manufacturer, producer, first stage dealer or second stage dealer, as the case may be, referred to in the said sub-rule, who is unable to produce the document evidencing actual payment of duty, shall be entitled to avail credit, calculated in a manner referred to in sub-rule (3), on inputs falling under Chapters 50 to 63 of the First Schedule to the Tariff Act, lying in stock or in process or contained in finished products lying in stock as on 31st day of March, 2003 upon making a written declaration of the description, quantity and value of the stock of each of such goods. The declaration made under this sub-rule shall exclude quantity of stock declared under sub-rule (1).

(3) (a) The credit of duty on each such input lying in stock and in process shall be calculated on the basis of such rates or in such manner [OLD - shall be calculated on the basis of such rate ] as may be notified by the Central Government in this behalf, having regard to the average price of such inputs, and the applicable rate of duty and the quantity of input as declared by the assessee under sub-rule (2).

(In clause (a) bold words has been substituted vide NTF. NO. 28/2003-CE(N.T.), DT. 01/04/2003)

NTF. NO. 28/2003-CE(N.T.), DT. 01/04/2003)

NTF. NO. 28/2003-CE(N.T.), DT. 01/04/2003)


(4) The declaration referred to in this rule shall be made on or before the 15th day of June, 2003.

(Bold words & figures has been substituted vide Ntf. No. 52/2003-CE(N.T.), Dt. 06/06/2003)

(Changes in sub-rule (4) refer Ntf. No. 43/2003-CE(N.T.), Dt. 12/05/2003)

(Changes in sub-rule (4) refer NTF. NO. 42/2003-CE(N.T.), DT. 01/05/2003)

(Changes in sub-rule (4) refer NTF. NO. 39/2003-CE(N.T.), DT. 25/04/2003)

(Changes in sub-rule (4) refer NTF. NO. 36/2003-CE(N.T.), DT. 16/04/2003)

(Changes in sub-rule (4) refer NTF. NO. 34/2003-CE(N.T.), DT. 10/04/2003)

(Sub-rule (4) has been inserted vide NTF. NO. 28/2003-CE(N.T.), DT. 01/04/2003)

(5) Notwithstanding anything contained in sub-rule (1), sub-rule (2) or sub-rule (3),-

(a) in case the manufacturer, producer, first stage dealer or second stage dealer referred to in sub-rule (1), as the case may be, who has not made declaration of the goods referred to in the said sub-rule (1) or sub-rule (2) lying in stock as on the 31st day of March, 2003, on or before the 30th day of April, 2003, he shall make a declaration of goods referred to in sub-rule (1) or sub-rule (2), lying in stock as on the 1st day of April, 2003, and upon making such declaration he shall be entitled to avail the credit in the similar manner as referred in sub rule (1), sub-rule (2) or sub- rule (3) read with any notification issued thereunder;

(b) in case the manufacturer, producer, first stage dealer or second stage dealer , as the case may be, referred to in sub-rule (1), who has made declaration of the goods referred to in sub-rule (1) or sub-rule (2) lying in stock as on the 31st day of March, 2003 and has availed credit in terms of the provision contained in this rule, on or before the 30th day of April, 2003, he shall make a declaration afresh, of the stock of the said goods lying as on 1st day of April, 2003 and upon making such declaration he shall be entitled to avail the credit in the similar manner as referred in sub rule (1), sub-rule (2) or sub-rule (3) read with any notification issued thereunder. The manufacturer, producer, first stage dealer or second stage dealer, as the case may be, referred to in sub-rule (1) shall not be eligible for the credit availed, if any, on the basis of any declaration of the goods referred to in sub-rule (1) or sub-rule (2) lying in stock as on the 31st day of March, 2003 made prior to the 30th day of April, 2003:

Provided that nothing contained in this clause shall apply if there is no difference in the description, quantity and value in declaration of the said goods lying in stock as on the 31st day of March, 2003 and on the 1st day of April, 2003, and the said manufacturer, producer, first stage dealer or second stage dealer, as the case may be, gives an intimation that the declaration made earlier may be taken as his declaration of the said goods lying in stock as on the 1st day of April, 2003.

(Above sub-rule (5) has been inserted vide Ntf. No. 40/2003-CE(N.T.), DT. 30/04/2003)

Explanation:- For removal of doubt, it is hereby clarified that the entire amount of credit as eligible under sub-rule (1) and/or (2) shall be calculated by the assessee himself who can take credit accordingly.

(Rule 9A has been inserted vide NTF. NO. 25/2003-CE(N.T.), DT. 25/03/2003)