Sending out packing material to job workers for conversion under Rule 57(F)(2) - Instructions regarding - Central Excise - 45/88-CX.8

Sending out packing material to job workers for conversion under Rule 57(F)(2) - Instructions regarding Circular No. 45/88-CX.8 Dated 6-9-1988 [From F. No. 267/90/88-CX.8] Government of India Ministry of Finance (Department of Revenue) Central Board of Excise and Customs, New Delhi Subject : Sending out packing material to job workers for conversion under Rule 57(F)(2) - Instructions regarding I am directed to say that representations have been received suggesting review of Board's instructions issued vide F. No. 267/129/87-CX.8, dated 3-3-1988 on the ground that disallowing Modvat credit on inputs of packaging material would result in anomalous situations. The matter has been examined by the Board. It has been decided that there is no need to review the aforesaid instructions. However in continuation to the aforesaid instructions, it is further clarified that Modvat credit on the inputs used in the manufacture of packaging material can be used for payment of duty on such packaging material whether consumed captively or otherwise. The duty paid on such packaging material can then be taken for payment of duty on final production. The above clarification may be brought to the notice of the field formations. This disposes of Collector of Central Excise, Coimbatore's letter V/48/30/46/88-CX.1, dated 29-4-1988, Collector of Central Excise Madurai's C.No. IV/16/69/88-TU, dated 25-5-1988 and Collector of Central Excise Cochin's C.No. IV/16/121/87-CX.1, dated 14-6-1988. Receipt of this letter may please be acknowledged.