Explanation of Definitions under CENVAT Credit in detail

A)“Exempted goods” means excisable goods which are exempt from the whole of the duty of excise leviable thereon, and includes goods which are chargeable to ‘Nil” rate of duty [and goods in respect of which the benefit of an exemption under Notification No. 1/2011-CE, dated 1st March, 2011 or under entries at serial numbers 67 and 128 of Notification No.12/2012-CE.,dated 17th March, 2012 is availed]

B) “Exempted service” means a –

1) taxable service which is exempt from the whole of the service tax leviable thereon or

2) service, on which no service tax is leviable under section 66B of the Finance Act; or

3) taxable service whose part of value is exempted on the condition that no credit of inputs and input services, used for providing such taxable service, shall be taken; But shall not include a service which is exported in terms of rule 6A of the Service Tax Rules,1994

C) “First Stage Dealer” means a dealer, who purchases the goods directly from,-

i) the manufacturer under the cover of an invoice issued in terms of the provisions of Central Excise Rules, 002 or from the depot of the said manufacturer, or from premises of the consignment agent of the said manufacturer or from any other premises from where the goods are sold by or on behalf of the said manufacturer, under cover of an invoice; or

ii) an importer or from the depot of an importer or from the premises of the consignment agent of the importer, under cover of an invoice;

D) “Manufacturer” or “producer”,-

i) in relation to articles of [jewellery or other articles of precious metals falling under heading 7113 or 7114 as the case may be] of the First Schedule to the Excise Tariff Act, includes a person who is liable to pay duty of excise leviable on such goods under sub-rule

(1) of rule 12AA of the Central Excise Rules, 2002;

ii) in relation to goods falling under Chapter 61,62 or 63 of the First Schedule of the Excise Tariff Act, includes a person who is liable to pay duty of excise leviable on such goods under sub-rule (1A) of rule 4 of the Central Excise Rules, 2002

E) “Output service” means any service provided by a provider of service located in the taxable territory but shall not include a service,

1) specified in section 66D of the Finance Act; or

2) where the whole of service tax is liable to be paid by the recipient of service

F) “Place of removal” means-

i) a factory or any other place or premises of production or manufacture of excisable goods;
ii) a warehouse or any other place or premises wherein the excisable goods have been permitted to be deposited without payment of duty;

iii) a depot, premises of a consignment agent or any other place or premises from where the excisable goods are to be sold after their clearance from the factory, from where such goods are removed.