Reversal of Modvat credit and payment of interest where exports were effected under Value Based Advance Licence before 31.1.97 under Special Scheme - Issue of Certificate - Regarding - Central Excise - 318/34/97-CX

Circular No. 318/34/97-CX dated 26/6/97 F.No. 209/48/95-CX.6 Government of India Ministry of Finance Department of Revenue, New Delhi Subject: Reversal of Modvat credit and payment of interest where exports were effected under Value Based Advance Licence before 31.1.97 under Special Scheme - Issue of Certificate - Regarding It has been brought to the notice of the Board that certificates are not being issued to the exporters, who have reversed the modvat credit in terms of the instructions and formula contained in Board's Circular No. 285/1/97-CX dated contain such particulars which may enable the concerned Custom Houses to expeditiously close the DEEC Book. 2. The matter has been examined by the Board. 3. It has decided that in cases where a manufacturer- exporter, or a merchant-exporter whose supporting manufacturers' name is mentioned in DEEC Book/ shipping Bills, approach the jurisdictional Assistant Commissioners of Central Excise with particulars in the format enclosed as Annexure- A, the same may be verified by the Assistant Commissioner with reference to the records the exporter to ascertain its correctness in terms of the formula prescribed in the Circular dated 10.1.97. A certificate should be issued by an officer of the rank of Assistant Commissioner on the body of the document containing the aforesaid particulars with initials on each of the leaf, indicating whether credit has been correctly reversed as per the formula and interest has been fully paid. Where reversal ia not in conformity with the Board's formula, the same can be got determined by Cost Accountant nominated by the Chief Commissioner under section 14A of Central Excise Act, 1944 before issue of any such certificate. In case of part reversal or part payment of interest, the same can be brought out clearly in such certificates. 4. In the cases where credit is revised on actual basis, such certificates should be issued only after verification of the records of the exporter by a Cost Accountant nominated by the Chief Commissioner under section 14A of the Central Excise Act, 1944. 5. It is also clarified that where nay certificate has already been issued to an exporter and accepted by the Customs, no fresh certificate is required to be issued. Sd/- (I.P. Lal) Deputy Secretary (CX. 6) __________________________________________________________ Annexure A Name Address of the Exporter ____________________________ Central Excise Commissionerate ____________________________ Division ______________________ Range ___________________ Shipping Bill No. S.No. date of AR4 / AR4A covered by Shipping Bill mentioned in Col. (1) Amount of Modvat credit required to be reversed in terms of formula (1) (2) (3) Amount of modvat actually reversed Amount of Amount of A. Amount Interest required to be deposited interest actually deposited with B. Particulars of entry in RG 23A /PLA particulars date of TR 6 Challans. C. Date (4) (5) (6)