Modvat Scheme - Grant of credit during transitional period under Rule 57H clarification regarding - Central Excise - 15/87-CX.6

Modvat Scheme - Grant of credit during transitional period under Rule 57H clarification regarding Circular No. 15/87-CX.6 Dated 11-2-1987 [From F. No. 211/ 74/86-CX.6] Government of India Ministry of Finance (Department of Revenue) New Delhi Subject : Modvat Scheme - Grant of credit during transitional period under Rule 57H clarification regarding. I am directed to say that it has been brought to the notice of the Board that Modvat credit taken during the transitional period is being denied by some Collectorates and demands being raised thereon, on the ground that the assessee had failed to file a declaration under Rule 57G. The matter has been examined by the Board which is of the view that during the transitional period no formal declaration under Rule 57G was required in respect of inputs lying in stock, received on or after 1-3-1986 and received upto 31-3-1986, for availing Modvat credit. However, the Assistant Collector must make the necessary verifications (as required under Rule 57H) before allowing this credit. The above instructions may be brought to the notice of the field formation and demands if any, raised (contrary to the above) may be rectified. Receipt of this letter may please be acknowledged.