Rule 12AAA – Power to impose restrictions in certain types of cases :

Rule 12AAA empowers the Central Government to provide for certain measures including restrictions on a manufacturer, registered importer, first stage and second stage dealer or an exporter if there is a misuse of CENVAT credit. The Central Government can exercise such powers where having regard to the extent of misuse of CENVAT credit, nature and type of such misuse and any other relevant factors, it is of the opinion that in order to prevent the misuse of the provisions of CENVAT credit, it is necessary in the public interest to impose restrictions. The nature of restrictions, (e.g. restrictions on utilization of CENVAT credit and suspension of registration in case of a dealer) types of facilities to be withdrawn and procedure for issue of such order by the Chief Commissioner of Central Excise may be specified by a notification in the Official Gazette. The provisions of this rule shall not be subject to anything contained in CENVAT Credit Rules, 2004.