Admissibility of MODVAT credit of duty paid on Carbon Electrodes used in the manufacture of Aluminium - Central Excise - 54/89-CX.8

Admissibility of MODVAT credit of duty paid on Carbon Electrodes used in the manufacture of Aluminium Circular No. 54/89-CX.8 Dated 4-12-1989 [From F. No. 263/49/89-CX.8] Government of India Ministry of Finance (Department of Revenue) Central Board of Excise Customs, New Delhi Subject : Admissibility of MODVAT credit of duty paid on Carbon Electrodes used in the manufacture of Aluminium. I am directed to invite your attention to Board's letter F. No. B-22/51/86-TRU ,dated 21-10-1986, which clarified that Carbon Electrode used in the manufacture of Aluminium should be treated an 'input' as it is essential for the manufacture of Aluminium, and to say that the CERA had reportedly raised certain doubts in this matter. 2. The matter has been examined in the Board's office in consultation with the Deputy Chief Chemist, CRCL, New Delhi, a copy of whose opinion is enclosed [Not Printed]. The Deputy Chief Chemist has confirmed that Carbon Electrodes are used in the manufacture of Aluminium and, therefore, should be regarded as an 'input'. 3. In view of the above, the instructions contained in Board's letter F. No. B-22/51/86-TRU, dated 21-10-1986 are hereby reiterated. 4. It may also be mentioned that the following instructions were issued by the Board regarding eligibility of various electrodes to Modvat credit. File No. Date Name of Electrodes/Ineligible to Modvat Credit. 1. 263/14/89-CX.8, 21-3-1989 Mercury 2. 267/8/88-CX.8, 15-7-1988 Spot welding electrodes /tips, 3. B.21/32/87-TRU, 23-9-1987 Titanium Coated Mild Steel Electrodes. The Eligibility to Modvat credit to these electrodes has also been examined by Deputy Chief Chemist, CRCL, New Delhi, a copy of whose opinion is enclosed [Not Printed]. The Deputy Chief Chemist is of the view that the aforementioned electrodes are not eligible for being treated as inputs and, therefore, Modvat credit of duty paid on such goods would not be admissible. Therefore, the Board's above instructions are also being reiterated. 5. All pending assessments may be finalised on the above basis. 6. Receipt of this letter may please be acknowledged. 7. Hindi version will follow. 8. This disposes of CCE, Belgaum's letter C. No. IV/16/178/89-B, dated 21-7-1989.