Admissibility of Modvat Credit on Cylinders used in the manufacture of fire extinguisher - Clarification regarding - Central Excise - 12/88-CX.8

Admissibility of Modvat Credit on Cylinders used in the manufacture of fire extinguisher - Clarification regarding Circular No. 12/88-CX.8 Dated 26-4-1988 [From F. No. 267/38/88-CX.8] Government of India Ministry of Finance (Department of Revenue) Central Board of Excise Customs, New Delhi Subject : Admissibility of Modvat Credit on Cylinders used in the manufacture of fire extinguisher - Clarification regarding. I am directed to say that doubts have been raised as to whether Modvat Credit of duties paid on cylinder used in the manufacture of fire extinguishers would be admissible or not. The matter has been examined by the Board. Cylinders are used in the manufacture of fire extinguishers as a part and the value thereof is included in the assessable value of the fire extinguishers. These cylinders after use of fire extinguisher are either destroyed or kept with the buyers. Hence Explanation (iv) to Rule 57A would not be attracted in this case. It has therefore been decided that Modvat credit would be admissible on cylinders used in fire extinguisher. The above instructions may be brought to the notice of the field formations. Receipt of the letter may please be acknowledged.