Adjustment in duty credit due to change in classification of products as per provisions of Rule 57E - Central Excise - B-21/5/87-TRU

Adjustment in duty credit due to change in classification of products as per provisions of Rule 57E F. No. B-21/5/87-TRU Dated 8-4-1987 Government of India Ministry of Finance (Department of Revenue) New Delhi Subject : Adjustment in duty credit due to change in classification of products as per provisions of Rule 57E. The undersigned is directed to state that certain doubts have been raised whether the provisions of Rule 57E as amended are applicable to cases where the change in classification of inputs was effected prior to 1-3-1987. 2. The matter has been examined in the Board. It is hereby clarified that the relevant date for adjustment of such additional duty is the date on which the payment of additional duty is made. Thus so long as the classification has been changed on the basis of Board's instructions (whether or not prior to 1-3-1987) and the additional duty payment has been made on or after 1-3-1987, there should not be any objection to permitting adjustment in the Modvat users' account. 3. Receipt of this letter may please be acknowledged. 4. Hindi version of this letter will follow in due course.