Admissibility of Modvat Credit on melting losses/ slags etc. clarification regarding - Central Excise - 267/136/87-CX.8

Admissibility of Modvat Credit on melting losses/ slags etc. clarification regarding F. No. 267/136/87-CX.8 Dated 15-1-1988 Government of India Ministry of Finance (Department of Revenue) Central Board of Excise Customs, New Delhi Subject : Admissibility of Modvat Credit on melting losses/ slags etc. clarification regarding. It has been represented by Indian-Ferrous Metals Manufacturers' Association that the benefit under Modvat in respect of duty paid inputs used in slags and losses arising during the manufacture of copper and articles thereof is being denied to some of the manufacturers. In this connection your attention is invited to Board's instructions issued vide F. No. 263/35/87-CX.8, dated 20-11-1987 wherein it was clarified that credit of the duty on inputs cannot be denied on the ground that part of the inputs is contained in the wastes and scraps which may even be exempted from excise duty. The slag which is generated in the course of manufacture of copper and articles thereof is a waste which would be covered under the provisions of Rule 57D. Accordingly, it is clarified that the duty on the inputs should not be denied on the ground that part of the inputs is contained in the slag and other invisible losses. The above instructions may be brought to the notice of the field formations. Receipt of this letter may please be acknowledged.