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 9-12-1986 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 state that certain representations have been received from the trade regarding difficulty in obtaining Modvat credit of the countervailing duty paid on imported goods in cases where the importer had not made a declaration in the Bill of Entry stating his intention of availing of Modvat credit of the countervailing duty. 2. The matter has been examined. Custom houses have issued instructions that for obtaining Modvat credit, the importer should subscribe to a declaration on all copies of the Bill of Entry that he intends to avail of credit of duty under Rule 56A or 57A of the Central Excise Rules in respect of the goods covered by that Bill of Entry. The importer's declaration would be confirmed by Custom Houses. The importer should also state the name and particulars of the factory and address of the Jurisdictional Superintendent of Central Excise. In such cases, the concerned Central Excise Officer would grant credit on the strength of the Bill of Entry without any prior reference to the Custom Houses. 3. While this procedure would continue to be followed for future also, there would be instances where, before issue of these instructions, the importer had not made any declaration. In such cases, on this ground alone, Modvat credit of countervailing duty should not be denied. The importer should subscribe to a declaration before the Jurisdictional Central Excise Officer that he had not claimed or obtained any refund of countervailing duty in respect of goods covered by the relevant bill of entry. On the basis of such declaration, the Central Excise Officer in charge may grant the Modvat credit and simultaneously refer the matter to the concerned Custom House and it verified that no refund has been granted in respect of countervailing duty. On receipt of such an intimation the Custom House will keep a suitable note on its copy of the Bill of Entry and will not sanction any refund of the countervailing duty in future unless the importer produces a confirmation from the Superintendent of Central Excise that credit account of the manufacturer has been debited to the extent of refundable amount. If a refund has already been sanctioned by the Custom House before the receipt of letter from the Central Excise Officer, the Custom House will send to the latter the particulars of refund and the Central Excise officer will allow credit of the net amount only after deducting the amount refunded. 4. Hindi version of this letter will follow in due course. 5. The receipt of this letter may please be acknowledged.