Central Excise - Availability of proforma credit on 'spot welding electrodes/tips - Clarification regarding - Central Excise - 32/88

Central Excise - Availability of proforma credit on 'spot welding electrodes/tips - Clarification regarding Circular No. 32/88 Dated 15-7-1988 [From F. No. 267/81/88-CX.8] Government of India Ministry of Finance (Department of Revenue) Central Board Excise and Customs, New Delhi Subject : Central Excise - Availability of proforma credit on 'spot welding electrodes/tips - Clarification regarding. Doubts have been raised regarding availability of Modvat credits on spot welding electrodes/tips when used in the manufacture of excisable products. The matter has been examined by the Board. It has been viewed that spot welding electrodes/tips are non-consumable and are more in the nature of tools or appliances and as such these products can not be treated as 'inputs' in view of the explanation under Rule 57A of the Central Excise Rules, 1944. Accordingly, the Board is of the view that 'MODVAT' is not available on 'Spot welding electrodes/tips'. The above guidelines may be brought to the notice of the field formations and trade interests may also be suitably informed. Cases if any, where this is being permitted may be rectified accordingly. Receipt of this letter may please be acknowledged. Hindi version is enclosed herewith.