Modvat Credit under Rule 57B of Central Excise Rules, 1944 - Clarification regarding - Central Excise - 47/88

Modvat Credit under Rule 57B of Central Excise Rules, 1944 - Clarification regarding Circular No. 47/88 Dated 12-9-1988 [From F. No. 267/34/88-CX.8] Government of India Ministry of Finance (Department of Revenue) Central Board of Excise Customs, New Delhi Subject : Modvat Credit under Rule 57B of Central Excise Rules, 1944 - Clarification regarding. I am directed to say that doubts have been raised as to whether in cases where credit of duty actually paid was taken by assessee even though he was eligible to take credit at a higher rate in terms of Rule 57B, can differential credit be taken at a later stage under the Modvat rules. The matter has been examined in consultation with the Law Ministry. It has been decided that since Modvat rules do not provide for taking of notional credit at a later date if not taken by the assessee at the time of receipt of the inputs itself, the same cannot be permitted to be taken at a later stage. Field formations may be advised accordingly. Trade intents may be suitably informed. This disposes of Collector of Central Excise, Indore's Letter No. XV (83) 21-3/87-CX, dated 15-6-1988. Receipt of this letter may please be acknowledged.