Circular No. 361/77/97-Central Excise
dated 3/12/97
F.No. 93/12/97-CX.3
Government of India
Ministry of Finance
Department of Revenue
Central Board of Excise & Customs, New Delhi
Subject: General Exemption 4 of 1997 dated 1.3.1997- Regarding.
General Exemption 4/97 dated 1st March, 1997 gives concessional rate of duty or a nil rate of duty at Sr. No. 55, 56 & 59 on certain articles of plastics subject to the conditions that Modvat Credit has not been taken on inputs used in the manufacture of such goods.
2. A case has been brought to the notice of the Board, where the assessee has simultaneously availed the benefit of Modvat Credit as well as full exemption/ concessional rates.
3. You will appreciate that if both streams are allowed, accounting of both inputs and finished products cannot be done properly and poses risk to revenue.
4. Manufacturers should be directed to opt for one or other system under the said General Exemption i.e., payment of duty or availing of exemption subject to the condition laid down in the interest of accounting and revenue.
5. Commissioners may kindly inform the Board, how many such instances have come to their notice and what action has been taken to safeguard Government revenue.
