Minutes of the North Zone Tariff Conference held at Chandigarh on 18th & 19th September, 1989 - CO) Procedure for granting refund where Modvat credit has been availed of - Central Excise - 51/90-CX.8

Minutes of the North Zone Tariff Conference held at Chandigarh on 18th 19th September, 1989 - CO) Procedure for granting refund where Modvat credit has been availed of Circular No. 51/90-CX.8 Dated 20-8-1990 [From F. No. 264/15/89-CX.8] Government of India Central Board of Excise Customs New Delhi Subject : Minutes of the North Zone Tariff Conference held at Chandigarh on 18th 19th September, 1989 - CO) Procedure for granting refund where Modvat credit has been availed of. I am directed to invite your attention to minutes on Point No. C(1) regarding procedure for granting refund where Modvat credit has been availed of. It was stated therein that the procedure prescribed vide Board's Circular No. 3/88, dated 15-4-1988 for variation of credit under Rule 57E consequent upon grant of refund to an assessee should be reviewed as difficulties were being faced by the field formations in implementing the same due to non-receipt of timely intimation from the officer incharge of the consignee factory. The matter has been examined in consultation with the Directorate General of Inspection. The suggestion that the onus of furnishing the certificates regarding reversal of credit should be shifted to the manufacturer instead of the departmental officers has not been found feasible, it is apprehended that this would result in frauds and malpractices being committed by the assessees as there will be no mechanism to verify the correctness of the documents presented by the assessee which is presently being done by inter-departmental correspondence. The Board has observed that the delay in sanctioning of refunds, is basically due to delay by the Central Excise officers in intimating the refund particulars to the officer incharge of the consignee factory and necessary adjustment/recovery and intimation thereof by him to the officer incharge of the factory of origin. The Board therefore, desires the Collectors of Central Excise to ensure that the required information is sent by the concerned officers to one another within the time limit of one week so that there is no delay in sanctioning of the refund claims under Rule 57E. This disposes off minutes on Serial No. 2 captioned "refunds" discussed in the West Zone Tariff Conference held at Bombay on 30th April, 1990 and 1st May, 1990 also.