Admissibility of Modvat credit on the anodes/cathodes used in the manufacture of zinc - Regarding - Central Excise - 7/90-CX.8

Admissibility of Modvat credit on the anodes/cathodes used in the manufacture of zinc - Regarding Circular No. 7/90-CX.8 Dated 9-2-1990 [From F. No. 263/74/89-CX.8] Government of India Central Board of Excise Customs New Delhi Subject : Admissibility of Modvat credit on the anodes/cathodes used in the manufacture of zinc - Regarding. I am directed to refer to the minutes on Point No. 14 of the Modvat meeting held at Bombay on 14-9-1989, on the above subject. The matter has been examined by the Board in consultation with the Deputy Chief Chemist, New Delhi (CRCL). Deputy Chief Chemist has advised that neither anodes nor cathodes are known to take part in the reaction in the manufacture of zinc by conduct electricity in the manufacture of zinc and do not get consumed. Hence the same cannot be regarded as inputs for purposes of admissibility of Modvat credit. Board has accepted the advice of Deputy Chief Chemist and decided that Modvat credit should not be permitted on the anodes cathodes used in the electrolytic process of metallurgical extraction of zinc. Trade and the field formations may be advised accordingly. Receipt of this letter may please be acknowledged.