Endorsement of G. P. 1. - Availment of Modvat credit thereon - Instructions regarding - Central Excise - 14/89

Endorsement of G. P. 1. - Availment of Modvat credit thereon - Instructions regarding Circular No. 14/89 Dated 17-4-1989 [From F. No. 263/19/89-CX.8] Government of India Ministry of Finance (Department of Revenue) Central Board of Excise and Customs, New Delhi Subject : Endorsement of G. P. 1. - Availment of Modvat credit thereon - Instructions regarding. I am directed to invite your attention to the minutes on Point No. 11 and Point No. 23 of the monthly meeting on Modvat held with the trade representatives on 6-2-1989 and 8-3-1989. Trade have expressed difficulty in obtaining Modvat credit on the endorsed gate passes both in respect of the part supplies received as well as the entire goods transferred to a third party. The matter has been examined by the Board. It has been decided that the original gate pass which has been endorsed once can be further endorsed once more provided the entire goods covered by GP1 are transferred to the third party in original packing. However, no subsidiary gate pass can be issued on such GP1 which have been endorsed upto two times. It has also been decided by the Board that in case part supplies are made from consignment covered under a GP1 and no subsidiary gate pass has been issued for such supplies, then the said GP1 can be endorsed to the buyer of rest of the consignment covered by the said GP1 specifying the quantity of material sold and duty involved on such part supply to Modvat buyer. The above instructions may be brought to the notice of the field formations. Trade interest may also be suitably informed. The receipt of this letter may kindly be acknowledged.