9911796707
TMI BlogRestriction of Modvat credit on goods imported under Project Imports (Classified under Heading 98.01 of the Customs Tariff Act reg.X X X X Extracts X X X X X X X X Extracts X X X X ..... Tariff Act reg.) I am directed to say that representations have been received by the Board that in some Commissionerates, the credit of Additional Duty of Customs paid on the goods (other than Capital Goods) classified under Heading 98.01 of the Customs Tariff imported under Project Import Regulations, 1986 has been restricted to 75% on the ground that Rule 57Q(3) restricts the admissible credit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... person who is setting up the project, but also to sub-contractors who have been engaged to provide machinery, equipment etc. for such projects Such sub-contractors are allowed to import raw materials, components, materials etc. required by them for the manufactured of the machinery, etc. at the same rates as are applicable to the project under heading no. 9801. It is evident, therefore, than impo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ble for input credit under Rule 57A or 57B. Hence, the provisions of Section AAAA of Chapter V of the Central Excise Rules, 1944 governing the Modvat on capital goods would not apply in respect of the Modvat on inputs, and vice versa. Thus, the restriction of 75% in respect of credit of additional duty paid on goods imported under Project Imports, classified under heading 98.01 of the Schedule to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... riff Act, 1995 and not to raw materials, inputs and components for the manufacture of Capital Goods imported under heading no. 98.01. 5. Trade and Field formations may be informed accordingly. 6. The receipt of this Circular may be acknowledged. - Circular - Trade Notice - Public Notice - Instructions - Office orders Tax Management India - taxmanagementindia - taxmanagement - taxmanagementin ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
