Modvat on Phosphoric Acid used for purifying sugar not admissible - Central Excise - 34/90-CX.8

Modvat on Phosphoric Acid used for purifying sugar not admissible Circular No. 34/90-CX.8 Dated 21-6-1990 [From F.No. 261/12/18/90-CX.8] Government of India Central Board of Excise Customs New Delhi Subject : Admissibility of Modvat credit on Phosphoric Acid used for purifying sugar - regarding I am directed to say that doubts have arisen whether Modvat Credit can be permitted in respect of the Phosphoric Acid used for the purification and whitening of sugar. The matter has been examined in consultation with the Deputy Chief Chemist CRCL. The view of Deputy Chief Chemist are enclosed as Annexure 'A'. It is felt by the Board that commercial sugar can be made even without phosphoric acid. Therefore it cannot be considered as an input necessary for manufacture of sugar. Board is therefore of the view that phosphoric acid cannot be regarded as an input for purposes of Modvat Credit. This disposes of CCE Aurangabad's Telex F.No. V.C.17(30)10/TE/89 dated 8-1-1990. Trade and field formations may be informed suitably.