Admissibility of CENVAT Credit on inputs used in the manufacture of the finished goods on which duty has been remitted- Board’s Circular 650/41/2002-CX dated 7th August, 2002- regarding.

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..... ty has been remitted- Board's Circular 650/41/2002-CX dated 7th August, 2002- regarding. I am directed to invite your attention to Board's Circular No. 650/41/2002-CX dated 7th August, 2002 on the above mentioned subject which was issued in the light of the judgment of the Tribunal in cases of M/s Inalsa limited Vs CCE, Delhi and M/s Kirloskar Electric Co. Vs CCE, Bangalore wherein the Tribuna .....

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..... f the value of the inputs. The intention of the Modvat scheme is that the duty paid on inputs can be taken credit for paying duty on the finished goods to give relief against the cascading effect of excise duty. When the duty on the finished goods is being remitted, allowing credit of the duty paid on inputs would confer a totally unintended benefit. Allowing such credit when the finished goods su .....

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..... ified that the credit of the excise duty paid on inputs used in the manufacture of the finished goods on which the duty has been remitted due to damage or destruction etc. is not permissible and the dues with interest should be recovered. 4. Trade and field formations may be informed suitably. 5. Receipt of the circular may be acknowledged. 6. Hindi version will follow. F.No. 267/22/2002-CX- .....

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