Clarification regarding option and withdrawal of Modvat scheme - Regarding - Central Excise - B.22/27/86-TRU

Clarification regarding option and withdrawal of Modvat scheme - Regarding F. No. B.22/27/86-TRU Dated 15-4-1987 Government of India Ministry of Finance (Department of Revenue) New Delhi Subject : Clarification regarding option and withdrawal of Modvat scheme - Regarding. The undersigned is directed to invite a reference to Ministry's letter of even number, dated the 20th June, 1986, where it had been clarified that it will not be possible to permit a manufacturer availing of the small-scale exemption to opt out of Modvat scheme once he has exercised the option of paying duty (and to avail of Modvat) in any financial year. 2. The matter has been further examined in the Board. It has been brought to notice that there have been certain manufacturers who had only filed a declaration in terms of rule 57G declaring his intention to avail of Modvat but had not actually paid any duty on his clearances or had not taken any credit of the duty paid on inputs. It has now been decided that in those instances where a manufacturer, who has opted for Modvat but has not availed of Modvat credit in respect of duty paid on inputs and continued to clear the output claiming full exemption from duty under the small-scale exemption scheme, permission may be granted to those manufacturers to opt for full exemption in the same financial year. Past cases may be decided accordingly. 3. Receipt of this letter may please be acknowledged. 4. Hindi version of this letter will follow in due course.