C.E. - Procedure for adjustment of credit under Rule 57E consequent upon grant of refunds - Central Excise - 3/88

C.E. - Procedure for adjustment of credit under Rule 57E consequent upon grant of refunds Circular No. 3/88 Dated 15-4-1988 [From F. No. 267/46/88-CX.8] Government of India Ministry of Finance (Department of Revenue) New Delhi Subject : C.E. - Procedure for adjustment of credit under Rule 57E consequent upon grant of refunds. I am directed to invite your attention to the provisions contained in Rule 57E of the Central Excise Rules, 1944, which provide for variation in duty credit arising out of grant of refund in respect of inputs on which credit has been availed of under Rule 57A. No procedure has so far been prescribed for variation of the said credit in cases of sanction of refunds of duty paid on inputs. The matter has been examined by the Board and it has been decided that the following procedure shall be followed for variation of Modvat credit under Rule 57E of Central Excise Rules, 1944, in cases of sanction of refunds of duty as inputs :- (i) The Assistant Collector of Central Excise incharge of factory of origin of the input should first sanction the refund claim but not make payment. He should intimate to the officer incharge of the consignee factory about the amount of refund sanctioned in respect of inputs sent to the consignee; (ii) The officer incharge of the consignee factory should on receipt of such intimation debit the appropriate amount from R.G. 23(A) Part II or PLA and sent the information to the Assistant Collector incharge of the factory of origin of having done so. (iii) On receipt of the intimations from all concerned Central Excise officers regarding debit of the refund amount, the Assistant Collector should make the payment of refund sanctioned by him. The above procedure may be brought to the notice of the trade through suitable trade notice.