Modvat credit in respect of C.V. duty paid on imported goods - Regarding - Central Excise - B. 22/67/86-TRU

Modvat credit in respect of C.V. duty paid on imported goods - Regarding F. No. B. 22/67/86-TRU Dated 13-4-1987 Government of India Ministry of Finance (Department of Revenue) New Delhi Subject : Modvat credit in respect of C.V. duty paid on imported goods - Regarding. The undersigned is directed to invite a reference to the Ministry's letter of even number, dated the 29th December, 1986, and to state that certain difficulties have been expressed by the trade regarding the requirement of giving declaration on the Bill of Entry for the purpose of availing of Modvat credit of countervailing duty paid on the inputs. 2. The matter has been examined in the Board. Keeping in view the progress of computerisation, it has been decided that the following revised procedure maybe followed only in respect of imports through Bombay Customs House. 3. At the time of import, the importer of the goods need not make any declaration on the Bill of Entry. However, when the goods are taken into use in the factory, the importer shall subscribe to a declaration to the jurisdictional Central Excise officer stating that no refund of the countervailing duty paid on the goods covered by the relevant Bill of Entry has been claimed or obtained. On the basis of such declaration, Modvat credit of the C.V. duty may be allowed and the Central Excise Officer incharge would refer the matter to Bombay Customs House to get it verified that no refund of the C.V. duty has in fact been granted. On receipt of such intimation, the Customs House will keep a suitable note on its copy of the Bill of Entry and will not sanction any refund of the C.V. duty unless the importer produces a confirmation from the jurisdictional Superintendent of Central Excise that credit account of the manufacturer has been debited to the extent of refundable amount. 4. If a refund has already been sanctioned by the Customs House the receipt of the information from the Central Excise Officer, the Customs House will send a letter stating the particulars of the net amount after taking into account the amount refunded. 5. The importer also as soon as possible furnish to the Bombay Customs House the details of the user to whom the imported goods have been sent in order to facilitate co-relation between the Bill of Entry and the factory where Modvat credit has been availed of. 6. Receipt of this letter may please be acknowledged. 7. Hindi version of this letter will follow in due course.