Modvat credit on Refractories used in steel industry - Central Excise - 8/88-CX.8

Modvat credit on Refractories used in steel industry Circular No. 8/88-CX.8 Dated 12-4-1988 [From F. No. 267/53/88-CX.8] Government of India Ministry of Finance (Department of Revenue) Central Board of Excise Customs, New Delhi Subject : Modvat credit on Refractories used in steel industry. It has been represented to the Board that the refractories used in electric arc furnace for the manufacture of steel are consumables and should therefore be treated as input for the purposes of availing Modvat credit under Rule 57A. The matter has been examined by the Board. Attention is invited to Board's instructions issued vide F. No. 261/25/1/88-CX.8, dated 16-2-1988 wherein the use of refractories in the cement industry was examined and it was decided that Modvat credit would not be available on refractories used in the said industry. The refractories are used in electirc arc furnace for giving inner lining which become an integral part of Electric Arc Furnace (machinery). Therefore the same would not be eligible for Modvat credit. Field formations may be suitably informed. Trade may also be suitably informed. Receipt of these instructions may please be acknowledged.