Minutes of the Monthly Modvat meeting held at Bombay on 22-4-1989 - Point No. 14 - Utilization of total Modvat credit towards payment of basic excise duty and special excise duty - Central Excise - 20/89

Minutes of the Monthly Modvat meeting held at Bombay on 22-4-1989 - Point No. 14 - Utilization of total Modvat credit towards payment of basic excise duty and special excise duty Circular No. 20/89 Dated 26-6-1989 [From F. No. 263/28/89-CX.8] Government of India Ministry of Finance (Department of Revenue) Central Board of Excise Customs, New Delhi Subject : Minutes of the Monthly Modvat meeting held at Bombay on 22-4-1989 - Point No. 14 - Utilization of total Modvat credit towards payment of basic excise duty and special excise duty. I am directed to refer to the minutes on Point No. 14 of the monthly Modvat meeting held with the trade representatives at Bombay on 22-4-1989 on the above subject. Doubts have been expressed by trade whether credit claimed on account of any specified duty can be utilized for payment of another specified duty. The matter has been examined by the Board. As per Notification No. 177/86, dated 1-3-1986 credit of specified duties can be taken on inputs and the same can be utilised for payment of specified duties on final products. It is not necessary that credit of a particular duty should be utilised for payment of that duty only. Credit of specified duties can be utilised for payment of any one of specified duties. However credit as well as utilisation thereof in respect of each of specified duties must be accounted for separately. This is necessary for the purpose of proper revenue accounting. Field formations and trade interest may be suitably informed. Receipt of this letter may please be acknowledged.