Availing of Modvat Credit on inputs at a later date - Regarding - Central Excise - F. No. 267/42/93-CX.8

Availing of Modvat Credit on inputs at a later date - Regarding F. No. 267/42/93-CX.8 Dated 27-9-1993 Government of India Central Board of Excise Customs New Delhi Subject : Availing of Modvat Credit on inputs at a later date - Regarding. Attention to point No. 5 of the Modvat meeting held on 7th May, 1990 at Bombay, wherein it was decided that Modvat credit is to be taken immediately on receipt of inputs alongwith duty paying documents in the assessee factory. However, stray cases of genuine delay could be taken up with the concerned Collector of Central Excise. 2. It has been brought to the Board's notice that SCNs' are being issued to the assessees in all cases where there is delay in the receipt of the duty paying documents. 3. It is requested to apprise the Board of the practice followed in your Collectorate in this regard, along with your specific comments. Time limit for taking MODVAT credit on inputs There is no provision in the statute under which a time limit has been prescribed for the availment of the MODVAT credit on inputs. The field formations however, are reported to be denying MODVAT credit if the availment is delayed. The Board should therefore issue clear instructions to the field formations to the effect that there is no time limit and the MODVAT credit on inputs should not be denied on the ground that its availment has been delayed. COMMENTS As per Rule 57G, the credit can be taken after filing the declaration immediately on receipt of the inputs alongwith duty paying documents. There is no question of taking credit at any later date than the date of receipt of inputs in the factory alongwith duty paying documents. DECISION Credit is to be taken immediately on receipt of inputs alongwith duty paying documents in the assessees factory. Stray cases of genuine delay may be taken up with the concerned Collectors of Central Excise.