Permission to avail Modvat Credit on inputs used for export production by SSI units simultaneously availing full exemption upto 15 lacs for home consumption - Regarding - Central Excise - 5/89-CX.8

Permission to avail Modvat Credit on inputs used for export production by SSI units simultaneously availing full exemption upto 15 lacs for home consumption - Regarding Circular No. 5/89-CX.8 Dated 21-3-1989 [From F. No. 267/27/89-CX.8] Government of India Ministry of Finance (Department of Revenue) Central Board of Excise Customs, New Delhi Subject : Permission to avail Modvat Credit on inputs used for export production by SSI units simultaneously availing full exemption upto 15 lacs for home consumption - Regarding. I am directed to say that doubts have been raised as to whether in cases, where higher notional credit has been taken by the assessees on inputs as per Rule 57E in the notification No. 175/86 and such inputs has been utilised in goods exported, the refund of such higher credit under Rule 57F(3) would be admissible or not. The matter has been examined by the Board. It is observed that as per rule 57F(3) the credit taken by an assessee on inputs can either be utilised for paying duty on home clearances or can be refunded to the assessee. There appears to be no bar under the aforesaid Rule to refund the higher notional credit taken by a small scale unit on the inputs used for export production. It has therefore been decided that higher notional credit takes on inputs would be refundable accordance in the Rule 57F(3). This disposes of Collectors of Central Excise, Ahmedabad's letter No. IV/10/227/1A/88/672, dated 7-2-1989. The above instructions may be brought to the notice of the field formations. The receipt of this letter may please be acknowledged.