NEPAL - Preferential entry into India of Nepalese Industrial Products viz. Wood Veneer - Request for from Shiva Veneer Industries, Nepalgunj, Nepal. Ref. from M/Commerce - Central Excise - 25/91-CX.8

NEPAL - Preferential entry into India of Nepalese Industrial Products viz. Wood Veneer - Request for from Shiva Veneer Industries, Nepalgunj, Nepal . Ref. from M/Commerce Circular No. 25/91-CX.8 Dated 17-7-1991 [From F. No. 267/23/91-CX.8] Government of India Central Board of Excise Customs New Delhi Subject : NEPAL - Preferential entry into India of Nepalese Industrial Products viz. Wood Veneer - Request for from Shiva Veneer Industries, Nepalgunj , Nepal . Ref. from M/Commerce. Reference to the Ministry's letter of even number dated 19th August, 1991 on the above subject. The matter has been examined by the Board. It is observed that it is not the intention of the set-off scheme to provide the facility of utilisation of accumulate credit on the lines of the Modvat or Performa Credit Scheme. Plain reading of Notification N0. 225/86-CE, dated 3-4-1986 suggests that final product is exempted from so much of duty as is equivalent to duty of excise leviable on inputs used in or in relation to manufacture of the final product. It means that whatever quantity of inputs was used in manufacture of final product is to be reduced to the extent of duty already paid on such inputs. Therefore the set-off is to be availed on the basis of consumption norms approved by the Collector, as and when goods are cleared from the factory on payment of duty. It is therefore emphasised that the procedure of maintaining 1:1 correlation as laid down vide Board's F.No. 21l/70/86-CX.6, dated 30-7-1987 should be followed rigidly and the practise, if any, of permitting carrying forward of the set-off benefit in the RG-23A account for availing of towards set-off of duty leviable on subsequent consignment of finished products should be discontinued with immediate effect. In cases where set-off has been allowed in violation of Notification No.225/86 4 Board's instruction F. No. 211/70/86-CX.6, dated 30-7-1987, demands should also be raised and decided accordingly.