Highlight of CENVAT scheme:
MODVAT credit scheme was introduced in 1986 vide rules 57A to 57U. CENVAT has been introduced w.e.f. 1-4-200 vide set of rules 57AA to 57AK.
Credit of duty paid on input:
The CENVAT scheme is principally based on system granting credit of duty paid on inputs. Under CENVAT a manufacturer has to pay duty as per normal procedure on the basis of ‘Assessable Value’. However he gets credit of duty paid on inputs.