Admissibility of Modvat credit on inputs used in the manufacture of sand moulds - question regarding - Central Excise - 29/88

Admissibility of Modvat credit on inputs used in the manufacture of sand moulds - question regarding Circular No. 29/88 Dated 30-6-1988 [From F. No. 261/84/1/88-CX. 8] Government of India Ministry of Finance (Department of Revenue) Central Board of Excise Customs, New Delhi Subject : Admissibility of Modvat credit on inputs used in the manufacture of sand moulds - question regarding. I am directed to say that representations have been received from the Trade that Modvat credit should be permitted on the inputs used in the preparation of sand moulds and ceramic moulds used in the casting process. The matter has been examined by the Board. It is observed that sand moulds are excisable products and form a part and parcel of the machinery used for casting. Thus these cannot be said be be inputs. Therefore Modvat credit would not be admissible on the inputs used in the manufacture of such moulds. The above instructions may be brought to the notice of the field formations. Trade indents may also be informed suitably. Receipt of this letter may please be acknowledge.