Central Excise - Modvat : Endorsement of gate passes upto two times - Instructions regarding - Central Excise - 22/90-CX.8

Central Excise - Modvat : Endorsement of gate passes upto two times - Instructions regarding Circular No. 22/90-CX.8 Dated 9-4-1990 [From No. 267/40/90-CX.8] Government of India Central Board of Excise Customs New Delhi Subject : Central Excise - Modvat : Endorsement of gate passes upto two times - Instructions regarding. I am directed to invite your attention is invited to Board's instruction issued vide F.No. 263/19/89-CX.8, dated 17-4-1989 whereunder it has been clarified that original gate passes which have been endorsed once can be further endorsed once more provided the entire goods covered by the G.P.I. are transferred to the third party in original packing. The West Regional Bench of CEGAT in its Order No. 1022/89/WRB, dated 1-1-1989 in the case of M/s. S.B.S. Organics Pvt. Ltd. v. CCE Vadodara (reported in 1990 (45) E.L.T. 701 (Tribunal) has permitted Modvat benefit on the gate pass which has been endorsed thrice on the rationals that when the Board itself has decided to relax the procedural requirement by way of administrative instruction, they should endeavour to extend Modvat credit on GPI bearing any number of endorsements wherever the duty paid nature of the good is evident from the gate passes produced; and the quantum of duty paid on the inputs can be ascertained therefrom. The matter has been examined by the Board. The CECAT's decision referred to above is in variance with Board's instruction dated 17-4-1989. The same may be considered as an exception and would be made applicable to the individual case if any. It should not be made applicable to any other case for grant of Modvat credit on the gate passes which have been endorsed more than two times. Board's instructions issued vide aforesaid letter dated 17-4-1989 should be followed rigidly. This disposes off CCE Vadodara's letter D.O. No. IV/16-55/89/NP, dated 2-3-1990. Field formation may be informed suitably. Receipt of this letter may please be acknowledged.