Maintenance of single RG 23A Part II - Permission regarding - Central Excise - 27/90-CX.8

Maintenance of single RG 23A Part II - Permission regarding Circular No. 27/90-CX.8 Dated 2-5-1990 [From F. No. 267/146/89-CX.8] Government of India Central Board of Excise Customs New Delhi Subject : Maintenance of single RG 23A Part II - Permission regarding. Attention is invited to Board's instructions issued vide F.No. B.21/4/87-TRU, dated 20-4-1987 permitting manufacturers to maintain a consolidated RG23A Part II Register chapter wise. It may be obsersved that this facility was permitted to the assessees so as to facilitate utilisation of Modvat credit without indicating the details of input credit separately for each final product in RG 23A Part II during the currency of any month. This is subject to the condition that a statement is submitted by the assessee showing input credit availed for each final product wise with RT-12 return and excess credit availed, if any, is suitably adjusted. However, providing the aforesaid facility does not over rule the basic principle of the Modvat scheme that the credit of duty paid on the inputs should be utilised for payment of only these products for the manufacture of which such duty paid inputs have actually been brought or in the manufacture of which they wiii be used. Thus facility to maintain RG 23A Part II chapterwise is only a procedural relaxation. It has been brought to the notice of the Board that in Collectorates, the manufacturers of winding wires of Copper Alluminium were being permitted to maintain a single RG 23A Part II for both the inputs and allowed to utilise credit of duty paid on both the Copper and Aluminium wire rods for paying duty on any of the winding wires without insisting on submission of statement indicating each final product wise input credit taken and utilised. This resulted in availment of excess credit earned on aluminium inputs for payment of duty on copper wire. This is irregular. As already pointed out Rule 57A does not permit utilisation of credit of duty paid on one input to be utilised for paying duty on another final product in the manufacture of which the said duty paid input has not been utilised. There is no harm in permitting consolidated maintenance of RG 23A in such a case but at the end of the month a statement has to be submitted by the assessee showing credit taken on copper wire rods and actually utilised on copper winding wires and similarly for Aluminium wires. Any credit utilised for paying duty of different final product has to be adjusted suitably and differential duty has to be recovered if need be from PLA. Since in Board's instruction 21/4/87-TRU dated 20-4-1987, no proforma has so far been prescribed for the aforesaid purpose, Board has prescribed the attached proforma for the sake of uniformity in implementation of these instructions by all the Collectorates. This may be followed rigidly. Steps may also be taken for recovering wrong credits if already allowed. Trade field formation may be informed suitably. Receipt of this letter may please be acknowledged. Statement to be submitted by the assessee who maintain consolidated RG 23A Part-II Register chapterwise in pursuance of Board's letter F. No. B.21/4/87-TRU, dated 20-4-1987 Name of the (Common) Input Quantity used in manufacture of final product Credit involved Name of the final product 1 2 3 4 Amount of credit utilised for payment of duty on final product [manufactured out of inputs in col. (1)] Excess/less credit utilised (Col. 3 - Col. 5) Entry No. of PLA/RG 23A Part II under which excess credit debited 5 6 7 Note : The above statement has to be prepared only in respect of those inputs which have been used for manufacture of final products were consolidated RG 23A Part-II is being maintained or are utilised in the manufacture of exempted as well as dutiable final products.