New Delhi, April 3 :     The department of revenue has announced simplified user-friendly rules on Cenvat credit to corporates. The department has introduced ad-valorem duty on induction furnaces and re-rolling units on goods manufactured from April.These two industries had earlier been brought under capacity based system of duty payment in 1997. Goods manufactured before April 1, 2000 would not be subject to ad valorem duty. Induction furnaces and re-rolling units can now avail of Cenvat credit for raw and intermediate inputs lying in their stockyards, provided the items are supported by duty payment documents. The department has also allowed the facility of deemed credit, April 1, 2000 to April 30, 2000, to users of goods manufactured by induction furnaces and re-rolling units. The department also announced the extension of excise duty exemption on watches and clocks costing not more than Rs 500 to components and parts. Changes have also been announced in the way capacity based scheme of duty abatement is applicable to independent textile processors. The pre-budget position allowing duty relief for closed and sealed stenters has been restored with effect from April, 1, 2000. However, this will be permitted on closure of stenters for a period of not less than fifteen days. The abatement will from now on be sanctioned by the joint commissioner of central excise instead of by the commissioner. The power to determine the annual capacity of a textile factory run by an independent processor has also been delegated to deputy and assistant commissioners of central excise with effect from April 1. The deemed credit of Rs 18 a kilo allowed in respect of texturised polyester yarn has also been extended to manufacturers of woven pile fabrics falling under heading No. 58.01. Cenvat credit will not be available to independent texturisers on inputs used in manufacture of texturised yarn (including draw-twisted and draw-wound yarn) under heading No 54.02. However, where an independent texturiser is also involved in manufacture of goods other than texturised yarn (for example fabrics) on which he discharges normal excise duty, the Cenvat credit shall be allowed in respect of inputs used by such independent texturisers. Besides minimising procedural requirements, the new rules are expected to reduce the areas of dispute and litigation in relation to Cenvat.