Grant of Modvat credit at higher rate in respect of inputs obtained from Small Scale Industries Units under Rule 57B - Instructions regarding - Central Excise - 13/86

Grant of Modvat credit at higher rate in respect of inputs obtained from Small Scale Industries Units under Rule 57B - Instructions regarding Circular No. 13/86 Dated 6-5-1986 [From F. No. 211/21/86-CX.6] Government of India Ministry of Finance (Department of Revenue) New Delhi Subject : Grant of Modvat credit at higher rate in respect of inputs obtained from Small Scale Industries Units under Rule 57B - Instructions regarding A suggestion has been received that in order to enable the manufacturers to avail of the deemed credit provided in Rule 57B. It would be helpful if, in addition to actual duty paid, the full notional duty is indicated in the gate pass. 2. The matter has been examined by the Board. It may be noted that availability of this information in the duty paying documents is not only helpful to the trade but would also help the assessing officers to keep a proper check as to whether the customer has raised just the right amount of credit in his RG 23A account or has taken excess credit by only referring to the tariff rate without taking into consideration the existing effective rate of duty. Accordingly, it has been decided that all Small Scale manufacturers availing the benefit of exemption Notification No. 175/86, dated 1-3-1986 and clearing the goods on payment of concessional rate of duty should be asked to incorporate the following additional item of information in the gate pass. Normal rate of duty, but for small scale industries concession. The assessees may be persuaded to insert these details in the GP-I by issue of supplementary instructions under Rule 233. Any difficulty that may be encountered in the matter, may please be brought immediately to the notice of the Board. Please acknowledge receipt of this letter.