The MODVAT scheme has been replaced by a new set of rules called CENVAT Credit Rules 2002.
A manufacturer or producer of a final product is allowed to take CENVAT credit of duties specified in the Cenvat Credit Rules, 2002.
The duties specified under Cenvat Credit Rules, 2002 are:
Basic Excise Duty on inputs specified in the First Schedule to Central Excise tariff Act (corresponding CVD on imported goods is allowable).
Special Excise Duty on goods specified in the Second Schedule to the Tariff Act (corresponding CVD on imported goods is allowable).
Additional Excise Duty paid under Additional Duties of Excise (Textile and Textile Article).
Additional Excise Duty paid under Additional Duties of Excise (Goods of Special Importance).
National Calamity Contingent duty (NCCD).
Education Cess and Secondary and Higher Education Cess on Excise Duty.
Additional custom duty chargeable under Customs Tariff Act (Spl. CVD)
Education Cess and Secondary & Higher Education Cess on CVD
Additional Excise Duty paid under Clause 85 of Finance Bill,2005 on Pan Masala and certain other Tobacco products.
Service tax on input services.
Education Cess and Secondary & Higher Education Cess paid on service tax. This credit can be utilised only for payment of education Cess on final product or output services.
'CENVAT Credit' has been shared with
