Delay in receipt of duty paid goods for proforma credit/Modvat - Central Excise - 223/52/86-CX.6

Delay in receipt of duty paid goods for proforma credit/Modvat F. No. 223/52/86-CX.6 Dated 5-11-1986 Government of India Ministry of Finance (Department of Revenue) New Delhi Subject : Delay in receipt of duty paid goods for proforma credit/Modvat. I am directed to say that instances have come to the notice of the Board that some Central Excise Officers are denying proforma credit to manufacturers merely on the ground that there is a large time lag between the date of clearance of the inputs from the factory of the original manufacturers and the date of receipt by the user manufacturers. 2. In this context, it is intimated that there is no provision under Central Excise Law for denying credit on this ground. Whenever the local Central Excise Officers feel necessary to verify the duty paid nature of input from the consignor's, they are free to do so. But credit should not be disallowed if it is otherwise admissible. Suitable action for the recovery of credit if allowed incorrectly may be taken on receipt of information from consignor. 3. These instructions may be brought to the notice of the field formations for compliance. 4. The receipt of these instructions may please be acknowledged.