Circular No. 233/67/96-Central Excise
Ministry of Finance, Department of Revenue
Central Board of Excise & Customs, New Delhi
Representations have been received from the Trade regarding denial of MODVAT Credit on invoices generated through Computer by registered dealers where the said persons have failed to submit the details of the software used including the format for information of the Assistant Commissioner of Central Excise in terms of the provisions of Rule 57GG (6) of the Central Excise Rules.
2. The matter has been examined by the Board and I am directed to say that the said stipulation in Law has been introduced in order to curd malpractioes at the end of the dealer. However, denial of MODVAT Credit to end users on the strength of such computer generated invoices is not warranted as non-submission of software is basically a technical offence in nature. However, the Jurisdictional Asstt. Collector may allow the MODVAT Credit as long as the duty paid character of the goods can be established and the said goods have been cleared on a proper 57GG invoice for the past period.
3. Trade and officers in field may be suitably informed.
