Recovery of Modvat credit wrongly availed whether show cause notice is to be issued - Who are the officers competent to adjudicate Modvat cases - 57-I(i) vis-a-vis 11A - Clarification regarding

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..... cases - 57-I(i) vis-a-vis 11A - Clarification regarding F. No. 267/104/87-CX.8 Dated 15-12-1987 Government of India Ministry of Finance (Department of Revenue) Central Board of Excise & Customs, New Delhi Subject : Recovery of Modvat credit wrongly availed whether show cause notice is to be issued - Who are the officers competent to adjudicate Modvat cases - 57-I(i) vis-a-vis 11A - Clarifica .....

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..... Indore High Court wherein it was held that it is mandatory to issue a show cause notice under Rule 57-I(i) before reversing a Modvat credit wrongly availed. He was therefore of the view that Board's instructions issued vide F. No. 267/73/87-CX.8, dated 8-9-1987 need revision. In the Board's aforesaid instructions it was directed that in case of wrong utilisation of Modvat Credit under Rule 57-I(i .....

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..... ns and decided by Collector. As regards issues at (iii) above, it may be mentioned that such inputs as per Rule 57F (ii) are to be treated as if the same are manufactured by receiving factory. Therefore the value of the inputs in respect of which wrong credit is availed have to be taken into consideration for determining the penalty under Rule 173Q of Central Excise Rule. These instructions may .....

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