Modvat credit on tool kits supplied along with motor vehicles - Admissibility regarding - Central Excise - 52/88

Modvat credit on tool kits supplied along with motor vehicles - Admissibility regarding Circular No. 52/88 Dated 3-10-1988 [From F. No. 267/82/88-CX.8] Government of India Ministry of Finance (Department of Revenue) Central Board of Excise and Customs, New Delhi Subject : Modvat credit on tool kits supplied along with motor vehicles - Admissibility regarding. It has been brought to the notice of the Board that in certian Collectorates Modvat credit is being allowed on the tool kits supplied along with the motor vehicles on the ground that its value is added in the assessable value of the vehicle. In this connection attention is invited to Ministry's letter F. No. 332/64/86-TRU, dated 30-7-1987 wherein it has clearly been laid down that in terms of explanation (8)(i) to Rule 57A tool kits (being excluded as inputs would not be eligible for Modvat credit. Board had therefore directed that the wrong credit allowed, if any, in the past in this regard may be recovered immediately. Receipt of this letter may please be acknowledged.