Notification No. 10/2017-Central Excise (N.T.), Dated 13/04/2017

Seeks to amend CENVAT credit Rules, 2004 to allow the importer of the goods to take Cenvat credit on basis of the challan of payment of service tax by the said importer on the services provided by a foreign shipping line to a foreign charterer w.r.t. goods destined for India.-

[TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB-SECTION (i)]                                                             
                                                                                  GOVERNMENT OF INDIA
                                                                                    MINISTRY OF FINANCE
                                                                             (DEPARTMENT OF REVENUE)

                                                                                        NOTIFICATION 
                                                                                New Delhi, the 13th April, 2017 
                                                                            No. 10/2017-Central Excise (N.T.), 

G.S.R.---(E).-In exercise of the powers conferred by section 37 of the Central Excise Act, 1944 (1 of 1944) and section 94 of the Finance Act, 1994 (32 of 1994), the Central Government hereby makes the following rules further to amend the CENVAT Credit Rules, 2004, namely : - 

1. (1) These rules may be called the CENVAT Credit (Second Amendment) Rules, 2017. 
    (2) They shall come into force on the 23rd day of April, 2017. 

2. In the CENVAT Credit Rules, 2004,- 
         (1)    in rule 2, in clause (l), for the words starting with" input service" means'and ending with "clearance of final products upto the place of                  removal," following shall be substituted, namely,- 

                   "input service" means,-
                   (i) services provided or agreed to be provided by a person located in non-taxable territory to a person located in non-taxable                                territory by way of transportation of goods by a vessel from a place outside India up to the customs station of clearance in                        India where service tax is paid by the manufacturer or the provider of output service being importer of goods as the person                        liable for paying service tax for the said taxable services and the said imported goods are his inputs or capital goods; or 

                  (ii) any service used by a provider of output service for providing an output service; or 

                 (iii) any service used by a manufacturer, whether directly or indirectly, in or in relation to the manufacture of final products and                        clearance of final products upto the place of removal,'

          (2) in rule 4, in sub-rule (7), after the second proviso, following shall be inserted namely,- 

               "Provided also that in respect of services provided or agreed to be provided by a person located in non-taxable territory to a person                  located in non-taxable territory by way of transportation of goods by a vessel from a place outside India up to the customs station                 of clearance in India where service tax is paid by the manufacturer or the provider of output service being importer of goods as the                 person liable for paying service tax for the said taxable services, credit of service tax paid by the person liable for paying service tax                 shall be allowed after such service tax is paid:"

(3)     in rule 9, in sub-rule (1), after clause (e), following shall be inserted, namely,- 
         
         (ea) a challan evidencing payment of service tax by the manufacturer or the provider of output service being importer of goods as the          person liable for paying service tax for the services provided or agreed to be provided by a person located in non-taxable territory to a          person located in non-taxable territory by way of transportation of goods by a vessel from a place outside India up to the customs station          of clearance in India; or

                                                                                                                                                                          [F. No. 354/42/2016-TRU] 

                                                                                                                                                                                            (Mohit Tewari) 
                                                                                                                                            Under Secretary to the Government of India

 Note.- The principal rules were published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide notification No. 23/2004 - Central Excise (N.T.) dated the 10th September, 2004 vide number G.S.R. 600(E), dated the 10th September, 2004 and last amended vide notification No. 4/2017 - Central Excise (N.T.) dated 2nd February, 2017 published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 98 (E), dated the 2nd February, 2017.