Modvat declarations under Rule 57G - Regarding - Central Excise - 42/88-CX.8

Modvat declarations under Rule 57G - Regarding Circular No. 42/88-CX.8 Dated 15-9-1988 [From F. No. 267 /114/88-CX.8] Government of India Ministry of Finance (Department of Revenue) Central Board of Excise and Customs, New Delhi Subject : Modvat declarations under Rule 57G - Regarding. It has been brought to the notice of the Board that Modvat credit is not being allowed on account of the following :- (i) The classification of the inputs declared by the assessee under Rule 56G does not tally with the correct classification because the same has been incorrectly classified by originating central excise officers. (ii) The description of the inputs declared by the assessee under Rule 57G is not in accordance with the tariff description because of the different trade names/brand names of the inputs. The matter has been examined by the Board. It has been decided that where the classification of the input declared by the assessee under Rule 57G does not tally with the correct classification, then the Modvat credit can be taken in RG 23A but should not be utilised for payment of duty till the correct classification of input is made by the Central Excise Officers of the originating manufacturer. For this purpose, inter-division/inter-collectorate correspondence should be made. As regards, the description of the inputs declared by the assessee, it has been decided that Modvat credit should not be denied because of minor variations in the description of the goods which occur because of the fact that the product is known in the market by different names/brand names provided the classifications of the input is correctly declared and duty on the inputs under correct classification is paid. The above instructions should be brought to the notice of the field formations. Trade interests may also be suitably informed. The receipt of these instructions may please be acknowledged.