Subject: Issue of certificates by Central Excise Officer regarding non-availment of Modvat Credit-Clarification regarding-
It has come to the notice of the Board that benefit of Notification 203/92-Customs is not being extended to some import consignments in Custom Houses on account of Verification of availment of Modvat credit in respect of the goods exported under Value Based Advance Licence scheme.
2. Though onus to satisfy the conditions of Notification 203/92-Cus. before the Customs authorities including non-availment of credit is placed on the Importer/ exporter, they may have to approach the Central Excise formations to secure a verification certificate for the purpose. With a view to avoid any difficulties for such exporters, who have not availed any Modvat credit and are therefore eligible for duty-free imports under Notification No. 203/92-Cus., it is clarified that in those cases where an exporter requests for certificate regarding non-availment of Modvat credit, a certificate may be issued by Range Superintendent on the body of the exporter”s copy of AR-4/ AR4A or on a copy thereof attested by the Range Officer after necessary verification of range records including RG-23-A records and the RT-12 returns as well as the Range”s copy of the relevant AR4/ AR4A.
3. The certificates should only state as to whether in respect of the goods described in AR4/ AR4A and cleared thereunder, any input stage duty credit was taken or not. Such certificates may also be issued in those cases where the manufacturer may have obtained the Modvat credits as and when the inputs were received but the same was reversed before the final products have been cleared out of the factory for export under AR4/ AR4A. No such certificate should, however, be issued, for the time -being, in those cases where this manufacturer may have obtained the Modvat credit before the export but has reversed the same subsequent to the clearance of the goods from the the factory for export.