Cash refund of the accumulated Modvat credit - Regarding - Central Excise - 220/54/96-CX

Circular No. 220/54/96-CX dated 4/6/96 F.No. 267/72/96-CX-8 Government of India Ministry of Finance (Department of Revenue), New Delhi Subject: Cash refund of the accumulated Modvat credit - Regarding It has been represented that the Central Excise authorities are not sanctioning cash refunds of the accumulated Modvat credit under the provisions of rules 57F (4) of the Central Excise Rules, 1944. As a consequence, large sums of money are lying tied-up in the accumulated Modvat credit account with exporters running into crores of Rupee. 2. The matter has been examined by the Board. Cash refund of the unutilised Modvat credit is an incentive given to manufacturers and exporters and non-grant of such claim will affect the competitiveness of the Indian industry in the International market. Accordingly I am directed to say that all such refund claims filed under the provisions of rule 57F(4) of the Central Excise Rules, 1944 should be decided expeditiously, wherever the manufacturers in not able to utilise the credit the credit of duty allowed under rule 57A against the goods exported during the quarter/ month to which the claim relates. Sd/- (Mallika Arya) Under Secretary to the Govt. of India