RULE 57AG. Transitional provision

(1) 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 unutilised on that day shall be allowable as CENV AT 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 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 utilised for payment of duty on any excisable goods, whether cleared for home consumption or for export.

(3) (a) An independent texturiser who has availed of the credit of duty paid on inputs used for manufacture of texturised yarn (including draw-twisted or draw-wound yarn) of polyesters falling under heading No. 54.02 of the 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 (including draw-twisted or draw-wound yarn) of polyesters falling under heading No. 54.02 of the said First Schedule lying in stock as on the 1st day of March, 2000, or thereafter.
(b) An independent texturiser who manufactures texturised yarn (including draw-twisted or draw-wound yarn) of polyesters falling under heading No. 54.02, and also other goods, shall be allowed to take CENV AT credit of the 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.

Explanation- For the purposes of this sub-rule, independent texturiser means a manufacturer engaged in the manufacture of texturised yarn (including draw-twisted or draw-wound yarn) of polyesters falling under heading No. 54.02 of the said First Schedule, and who does not have the facility in his factory (including plant and machinery) for manufacture of partially oriented yarn of polyesters falling under sub-heading No. 5402.42 of the said First Schedule.

(4) A manufacturer, who had debited amount equivalent to ten per cent of the value of inputs or as the case may be, partially processed inputs while removing such inputs or partially processed inputs under the sub-rule (4) of rule 57F as it existed prior to the 1st day of April, 2000, and receives back the inputs or as the case may be, partially processed inputs, on or after the 1st day of April, 2000, shall be allowed to take CENV AT credit of the amount debited by him and shall be allowed to utilise the CENV AT credit in accordance with these rules.

(5) A manufacturer of machinery falling under heading Nos. 84.26, 84.27, 84.28, 84.29 and 84.30 and motor vehicles, who had received, on or after the 1st day of March, 2000, tyres, tubes and flaps falling under sub-heading Nos. 4011.90, 4012.11, 4012.19, 4012.90 and 4013.90 cleared before the 1st day of March, 2000 on which special excise duty has been paid as it existed prior to the 1st day of March, 2000, for use in the manufacture of machinery falling under heading Nos. 84.26, 84.27, 84.28, 84.29 and 84.30 and motor vehicles, shall be allowed to take CENVAT credit of the amount of special excise duty paid by him and shall be allowed to utilize the CENVAT credit in accordance with these rules.

(Sub-Rule has been inserted vide Ntf. No. 51/2000-Exc.(NT), Dt.29-08-2000)