Clarifications regarding simultaneous availing of Modvat and Small Scale exemption - Regarding - Central Excise - 22/46/86-TRU

Clarifications regarding simultaneous availing of Modvat and Small Scale exemption - Regarding F. No. 22/46/86-TRU Dated 8-9-1986 Government of India Ministry of Finance (Department of Revenue) New Delhi Subject : Clarifications regarding simultaneous availing of Modvat and Small Scale exemption - Regarding The undersigned is directed to invite a reference to the clarification issued against Sl. No. 19 of Board's letter F. No. 216/5/86-CX.6, dated the 1st July, 1986 under which it was clarified that a manufacturer cannot simultaneously avail of Modvat for some products and full exemption for others under the small scale exemption scheme. 2. In this context, a doubt has been raised whether a manufacturer can avail of full exemption in respect of a product, which is not covered under Modvat. The matter has been examined in the Board. It is hereby clarified that so long a manufacturer avails of Modvat for one or more products he cannot avail of full exemption under the small-scale exemption scheme for any other product. The fact that the other products may not be covered under 'Modvat' is not relevant for this purpose.