Modvat credit on Nitrogen and Carbon Dioxide gases used for safe transportation of transformers admissible - Central Excise - 39/90-CX.8

Modvat credit on Nitrogen and Carbon Dioxide gases used for safe transportation of transformers admissible Circular No. 39/90-CX.8 Dated 5-7-1990 [From F. No. 264/19/90-CX.8] Government of India Central Board of Excise Customs New Delhi . Subject : Admissibility of Modvat credit on Nitrogen and Carbon Dioxide gases used for safe transportation of transformers - regarding. I am directed to invite your attention to minutes on point number 4 of the 2nd North Zone Tariff-cum-General Conference of Collectors of Central Excise held at Manali on 7th and 8th of June, 1990. The issue raised therein was whether credit of duty paid on Nitrogen and Carbon Dioxide gases used for safe transportation of transformers could be permitted or not. It was observed by the conference that the transformer tanks are required to be filled in with carbon dioxide and nitrogen gases instead of transformer oil while removing the same from the factory in order to ensure that the impregnated coils do not absorb moisture during the transportation of the transformer. These gases are subsequently vented out in the air on reaching the place of use and re-filled with oil. It is therefore observed that transformers are cleared duly filled with Nitrogen and Carbon Dioxide from the factory and marketing thereof is not possible without filling them with these gases. These gases could therefore be said to be used as an input in relation to the manufacture of the transformer. Board has accepted the recommendation of the conference and decided that Nitrogen and Carbon Dioxide gases, used for safe transportation of transformer, would be treated as input eligible for Modvat credit. All pending cases may be decided accordingly.