Circular, 2011
A circular made under the The Central Excise Act, 1944.
Made under The Central Excise Act, 1944.
Text
Reproduced from the document India Code holds for this instrument. The Gazette prints Hindi and English side by side and this is the English; the Department's own PDF remains the authority.
Circular No. 940/01/2011-CX Government of India Ministry of Finance Department of Revenue (Central Board of Excise & Customs) New Delhi, dated the 14 th January, 201 1 To, All Director Generals, All Chief Commissioners of Central Excise (including LTU), All Commissioners of Central Excise (including LTU).
Sir/ Madam, Subject: Application of provisions of Section 5A(1A) of the Central Excise Act, 1944-reg. Attention is invited to Board's circular No. 937/27/2010-CX dated 26.11.10 issued from F.No.52/1/2009-CX1 (Pt.), wherein based on the opinion of the Law Ministry, it was clarified that in view of the specific bar provided under sub-section (1A) of
Section 5A of the Central Excise Act, 1944, the manufacturer cannot opt to pay the duty in respect of unconditionally fully exempted goods and he cannot avail the CENVAT credit of the duty paid on inputs.
2. It is further clarified that in case the assessee pays any amount as Excise duty on such exempted goods, the same cannot be allowed as "CENVAT Credit" to the downstream units, as the amount paid by the assessee cannot be termed as "duty of excise” under Rule 3 of the CENVAT Credit Rules, 2004.
3. The amount so paid by the assessee on exempted goods and collected from the buyers by representing it as "duty of excise” will have to be deposited with the Central Government in terms of Section 11D of the Central Excise Act, 1944 . Moreover, the CENVAT Credit of such amount utilized by downstream units also needs to be recovered in terms of the Rule 14 of the CENVAT Credit Rules, 2004.
4. Trade & Industry as well as field formations may be suitably informed.
5. Receipt of this circular may kindly be acknowledged.
6. Hindi version will follow.
Yours faithfully, (Amish Kumar Gupta)
OSD (CX-8)
Provisions this circular answers to
Read out of the instrument itself: an enabling provision is one it says it was made under, which is the power it rests on. The rest it names without resting on.
Other instruments under the same Act
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- 03/2026-Central Excise (N.T) — Seeks to amend Rule 18 and Rule 19 of Central Excise Rules, 2017. Notification 2026
- 03/2026-Central Excise — Seeks to rescind notification No. 5/2023-Central Excise dated 1.2.2023 Notification 2026
- 04/2026-Central Excise — Seeks to amend notification no. 03/2025 dated 31.12.2025, to prescribe nil rate on unmanufactured tobacco or tobacco refuse, not bearing a brand name and not packed for retail sale Notification 2026
- 05/2026-Central Excise — Seeks to reduce Special Additional Excise Duty on petrol and diesel for domestic consumption Notification 2026
- 06/2026-Central Excise — Seeks to levy Special Additional Excise Duty on export of petrol and diesel. Notification 2026
- 07/2026-Central Excise — Seeks to amend the Eighth Schedule to Finance Act, 2002 to insert Aviation Turbine Fuel in the Schedule and prescribe Special Additional Excise Duty on it. Notification 2026
- 08/2026-Central Excise — Seeks to prescribe an effective rate of Special Additional Excise Duty on Aviation Turbine Fuel when cleared for exports Notification 2026
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