Central Excise - Credit of duty paid on paper and paperboard falling under sub-heading No. 4811.30 for the period 1-5-1989 to 15-8-1989 - Clarification regarding - Central Excise - 27/90-CX.3

Central Excise - Credit of duty paid on paper and paperboard falling under sub-heading No. 4811.30 for the period 1-5-1989 to 15-8-1989 - Clarification regarding Circular No. 27/90-CX.3 Dated 24-5-1990 [From F. No. 93/47/89-CX.3] Government of India Central Board of Excise Customs New Delhi Subject : Central Excise - Credit of duty paid on paper and paperboard falling under sub-heading No. 4811.30 for the period 1-5-1989 to 15-8-1989 - Clarification regarding A doubt has been expressed as to whether the restriction of MODVAT credit in excess of Rs. 800/- per tonne was applicable to paper and paperboard falling under sub-heading No. 4811.30 'for the period from 1-5-1989 to 15-8-1989'. 2. The matter has been examined. As per Notification No. 149/87-C.E., dated 20-5-1987, which amended Notification 177/86, dated 1-3-1986, issued under Rule 57A of the CER, 44, the grant of credit of duty in respect of paper and paperboard falling under sub-heading No. 4811.30 was restricted to Rs. 800/- per tonne or the actual amount of duty paid, whichever was less. This restriction has, however, been removed with the issue of Notification No. 164/89-C.E., dated 16-8-1989 which further amended. Notification No. 177/86, dated 1-3-1986. Thus, the actual duty paid on paper and paperboard falling under sub-heading No. 4811.30 was available as credit. In this context, a doubt has been raised as to whether it was the intention of the Government to actually restrict the credit of duty to only Rs. 800/- per tonne or the actual duty paid during the period 1-5-1989 to 15-8-1989. Tax Research Unit when consulted in this matter, has stated that there was no intention of granting credit of duty to the extent of actual duty paid in respect of such paper and paperboard during the peirod 1-5-1989 to 15-8-1989. Therefore, it is clarified that during the aforesaid peirod, the credit of duty paid on paper and paperboard falling under sub-heading No. 4811.30 was restricted to Rs. 800/- per tonne or the actual amount of duty paid, whichever was less. 3. The above clarification may be brought to the notice of the lower field formations and the trade interests may also be suitably advised. 4. All pending assessments may be finalised on the above basis.