Notification No. 217/86-C.E., dated 2-4-1986 as amended by Notification No. 97/89-C.E., dated 1-3-1989 providing for clearance of goods from one plant to another of the same manufacturer without payment of duty under Chapter X procedure - Amendment regarding - Central Excise - 44/90-CX.8

Notification No. 217/86-C.E., dated 2-4-1986 as amended by Notification No. 97/89-C.E., dated 1-3-1989 providing for clearance of goods from one plant to another of the same manufacturer without payment of duty under Chapter X procedure - Amendment regarding Circular No. 44/90-CX.8 Dated 16-7-1990 [From F. No. 267/61/90-CX.8] Government of India Central Board of Excise Customs New Delhi Subject : Notification No. 217/86-C.E., dated 2-4-1986 as amended by Notification No. 97/89-C.E., dated 1-3-1989 providing for clearance of goods from one plant to another of the same manufacturer without payment of duty under Chapter X procedure - Amendment regarding. Notification No. 217/86-C.E., dated 2-4-1986 has been amended by Notification No. 97/89-C.E., dated 1-3-1989 providing for clearance of goods from one plant to another plant of the same manufacturer without payment of duty subject to observance of Chapter X procedure. A number of representations have been received from the assessees trade Associations regarding non availability of credit of duty on Inputs used in the manufacture of intermediary products, which are cleared to another plant under Chapter X procedure in terms of Rule 57C. It has, therefore been requested that credit taken on inputs used in intermediate products should not be denied otherwise the whole idea of amending Notification No. 217/86-C.E., would be defeated. The matter has been examined by the Board. There is no question of grant of credit on inputs, which are used in exempted intermediate products cleared under Chapter X procedure. Duty on the intermediate goods can be paid forgoing the exemption and Modvat credit taken on inputs can be availed for payment of duty on such intermediates without following the Chapter X procedure. This way there will be no denial of credit. There is no need to amend any rules or rescind Notification No. 97/89-C.E., dated 1-3-1989. The field formations/trade may be advised suitably.