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TMI BlogClarification regarding simultaneous availment of SSI exemption for home consumption and Modvat credit for export-reg.X X X X Extracts X X X X X X X X Extracts X X X X ..... ion regarding simultaneous availment of SSI exemption for home consumption and Modvat credit for export-reg. I am directed to refer to Board's circular No. 59/88-CX-8 dated 27.10.88 (F. No. 263/32/88-CX 8) wherein it was clarified that small scale units who have opted for full exemption under notification No. 175/86-CE., could be permitted to avail exemption on goods cleared for home consumptio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ave been raised whether Board's above said instructions are equally applicable to units availing SSI exemption under notification No. 16/97-CE., dated the 1st April, 1997, since the benefit of exemption and concessional rate of duty under the notification is available subject to the condition that the assessee does not avail Modvat credit under rule 57A upto a clearance value of Rs. 100 lakhs. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ance with the procedure prescribed by the Government. 5. It is, therefore, clarified that the Board's aforesaid instructions would mutatis mutandis apply to the units, simultaneously availing exemption under notification No. 16/97-CE., and Modvat credit on inputs used for their export production. The credit so availed can either be utilised for payment of duty when the units start paying duty ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n for home consumption can be availed simultaneously along with taking MODVAT/CENVAT credit for the goods that are exported. Doubts have been raised by trade and industry as well as field formations regarding the applicability of this Circular to notification No. 8/2003- CE dated 1-03-2003 and notification No. 8/2006- CE dated 1-03-2006. 2. The matter has been examined. It is seen that the re ..... X X X X Extracts X X X X X X X X Extracts X X X X
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