Payment through RG23 whether eligible for incentive scheme under Notification No. 116/84-CE - Central Excise - 81/88-CX.6

Payment through RG23 whether eligible for incentive scheme under Notification No. 116/84-CE Circular No. 81/88-CX.6 Dated 6-12-1988 [From F. No. 202/19/88-CX.6] Government of India Ministry of Finance (Department of Revenue) Central Board of Excise Customs, New Delhi Subject : Payment through RG 23 whether eligible for incentive scheme under Notification No. 116/84 dated 11-5-1984 - Regarding. I am directed to say that references have been received by the Board seeking clarification as to whether payment made through RG 23 Pt. II maintained under Notfication No. 201/79, dated 6-4-1979 (since rescinded) could be taken into account for calculating the credit amount available as production incentive under Notification No. 116/84, dated 11-5-1984 issued under Rule 56AA. 2. The matter has been examined by the Board. As per Explanation (4) to notification No. 116/84-C.E., dated 11-5-1984, effective rate of duty is to be computed by disregarding any notification which grants exemption by way of giving credit with respect to duty equivalent to that paid on the inputs. Since Notification No. 201/79 dt. 6-4-1979 is such a notification providing for exemption by way of giving credit with respect to reduction of duty of excise equal to duty paid on inputs, the duties paid from the PL\ as well as RG.23Pt. II maintained under Notification No.201/79 dt. 6-4-1979 should be taken into account for calculating the credit amount available as incentive under Notfn. No. 116/84 dt. 11-5-1984. (This disposes of Collector of Central Excise, Vadodara's reference C.No.IV/16/26/87/M.P. dated 16-9-1987 on the above subject.) 3. Field formations may be informed. 4. Receipt of these Instructions may be acknowledged. Yours faithfully, Sd/- (A.K. PRASAD) UNDER SECRETARY CENTRAL BOARD OF EXCISE CUSTOMS