Admissibility of Modvat credit in respect of duty paid on Glass Bottles used as packaging material in the manufacture of aerated water - Central Excise - 19/92-CX.8

Admissibility of Modvat credit in respect of duty paid on Glass Bottles used as packaging material in the manufacture of aerated water Circular No. 19/92-CX.8 Dated 3-9-1992 [From F. No. 267/52/92-CX.8] Government of India Central Board of Excise Customs New Delhi Subject : Admissibility of Modvat credit in respect of duty paid on Glass Bottles used as packaging material in the manufacture of aerated water. It has been represented to the Board that Modvat credit is not being allowed on the glass bottles received by certain aerated water manufacturers through an endorsed gate pass as the goods were not received in the factory in its original packing. It was also brought to the notice that show cause notices were being issued denying Modvat credit on the above ground as well as on the ground that such glass bottles are shown in their books of accounts as "fixed assets' thereby treating glass bottles as a part of plant and machinery. In this connection the Board's Circular No. 19/88-CX.8, dated 28-6-1988 wherein it was clearly clarified that Modvat credit would be allowed on glass bottles/tin containers. After examining the issue, the Board reiterates that Modvat credit should not be denied on the glass bottles on the grounds that such glass bottles are treated as fixed assets or otherwise. As regards bringing of duty paid glass bottles after printing/decoration through a job worker, it is stated that so long as the duty has been paid on glass bottles at the rate as applicable to glass bottles, credit should not be denied merely on the above said grounds. In such cases, the procedures prescribed under Notification No. 351/86 can be extended so as to cover the job work activities under Notification 214/86. 2. Field formations and trade intereats may be informed suitably. 3. Receipt of this letter may please be acknowledged. 4. This disposes of reference made by Collector of Central Excise, Kanpur vide her letter D.O.C. No. V(30)V/Modvat/88/92, dated 10th August 1992.