Draft Circular Dated 9/10/2009

Seeking of views of Trade and Industry and Field Formations on the proposed amendment of CENVAT Credit Rules to provide for registration by the importer who wish to issue cenvatable invoices – reg.-

(To elicit response / Comments only)

[Disclaimer:- This proposal has been put up only to elicit public response. No final decision has been taken by Government/ Board. Government/ Board will proceed further in the matter only after due examination of the responses received .]

Responses to the proposal may please be sent at amishkumargupta@gmail.com or faxed to Ms. Hemambika R. Priya, Director (CX-6&8) at 011-23092867 by 31st October, 2009.

Government of India

Ministry of Finance

Department of Revenue

(Central Board of Excise & Customs)

Representations have been received from trade and industry for reintroducing the facility of endorsement of Bill of Entry to facilitate passing on of cenvat credit. This request has been received from importers who intend to transport the imported goods in full or part from the port of import to their customers or to their job worker for further purposes.

2. The request has been examined. Endorsement of bill of entry is not permissible as per the present provisions of law. Moreover, the said practice is also not in consonance with the present policy of cenvat credit where credit is allowed on the basis of an invoice or other document which carry the registration number of the seller. Rule 9(1)(ii) of the CENVAT Credit Rules, 2004, provides that invoice issued by an importer is a valid document for taking cenvat credit. Further, it has been pleaded by some of the importers that there is no specific provision in the law which mandate the importer to take Central Excise registration. In this connection, it has been noticed that in the erstwhile Central Excise Rules, there was a specific provision for allowing credit on an invoice issued by an importer registered with the Central Excise Officer. In order to avoid confusion, it is proposed that relevant provisions in the CENVAT Credit Rules may be amended to specifically provide that an invoice issued by an importer registered with the Central Excise Officer, would be a valid document for availing cenvat credit.

3. Chief Commissioners and Commissioners are requested to bring the contents of this communication to the notice of trade and industry to seek their views.

4. Trade & Industry and the field formations are requested to give their opinion, view and comments on this proposal. On receipt of the views, a final view would be taken by the government.

F.No.267/83/2008-CX-8

Sushil Solanki

Commissioner (CX), CBEC