Circular No. 211/45/96-Central Excise
Government of India
Ministry of Finance
(Department of Revenue), New Delhi
Subject: Problems faced in availing Modvat on Rule 52A invoice in the name of the Registered Office/ Head Office but credit to be availed by the factory- Regarding.
Attention is invited to the Board”s Circular No. 179/13/96-CX dated 29.2.1996 providing for the facility for the endorsement of Bill of Entry where the Bill of Entry is in the name of the Registered Officer/ Head Office but the credit is to be availed by the manufacturing unit.
2. Similar problem is also being faced in the cases of goods procured from the domestic market where the Registered Office/ Head Office procure the goods on behalf of the manufacturing unit and the said goods are involved in the name of the Registered Office/ Head Office instead of the manufacturing unit i.e. the actual user.
3. The matter has been examined by the Board.
4. It has been decided that credit should not be denied where the rule 52A invoice is in the name of the Registered Office/ Head Office provided that :-
(a) entire consignment covered in the said rule 52A Invoice is received in the factory in the original packed condition; and
(b) the duplicate copy of the rule 52A invoices is endorsed by the Registered Office/ Head Office to the effect that the consignment covered by the Rule 52A invoice is delivered to the manufacturing unit for availing credit.
5. In all cases duty paying documents on the basis of which credit has been availed should be submitted to the Range Superintendent for necessary verification and defacing/ endorsement.
6. Pending cases may be decided in the light of the above.
