Central Excise - Credit or Modvat benefit of CVD paid on steel sheets imported by M/s. IOC Ltd. - Clarification regarding - Central Excise - 49/89-CX.8

Central Excise - Credit or Modvat benefit of CVD paid on steel sheets imported by M/s. IOC Ltd. - Clarification regarding Circular No. 49/89-CX.8 Dated 2-11-1989 [From F. No. 261/27/12/89-CX.8] Government of India Ministry of Finance (Department of Revenue) Central Board of Excise Customs, New Delhi Subject : Central Excise - Credit or Modvat benefit of CVD paid on steel sheets imported by M/s. IOC Ltd. - Clarification regarding. It has been brought to the notice of the Board that M/s. Indian Oil Corporation Ltd. (IOC) import steel sheets through MMTC, the canalising agency, on High Sea Purchase basis. M/s. IOC file all customs papers at the time of importation. The steel sheets so imported are required to be moved to various points of IOC from where such steel sheets are supplied in turn to the cylinder manufacturer operating at different points. Because of the fact that the entire consignment of imported steel sheets cannot be sent to a particular cylinder manufacturer in one lot, the splitting-up of the consignments becomes inevitable. M/s. IOC have represented that they may be permitted to issue certificates which could be regarded as duty paying documents in respect of countervailing duty paid on such imported steel sheets so that the cylinder manufacturers could get Modvat credit of such countervailing duty. The matter has been examined. In this connection, your attention is invited to Ministry's letter F. No. B-22/8/36-TRU, dated 10-4-1986 whereunder instructions have already been issued to the effect that in case of import of any inputs canalised through the public sector undertakings like STC/MMTC, credit under Modvat Scheme can be taken on the scrength of the certificates issued by such public sector undertakings as proof of payment of countervailing duty. It has been decided that similar procedure should be followed in respect of steel sheets imported by M/s. Indian Oil Corporation Ltd., a public sector undertaking, through MMTC, on high sea purchase basis. The instructions may be given wide publicity through issue of Trade notices. The receipt of this letter may please be acknowledged.