Government of India
Ministry of Finance
Department of Revenue
Central Board of Excise & Customs, New Delhi
Subject: Clarification regarding Notification No. 64/94-CE (NT) dated 7.11.1994
I am directed to invite a reference to the Board”s Circular No.76/76/94 dated 8th November, 1994 and to say that the PHD Chambers of Commerce and Industry have, with reference thereto, brought to the Board”s notice the following problems:-
(i) Modvat is not being allowed in expect of inputs laying in stock as on 31.3.94 for which invoices have been issued between 1.4.94 and 11.5.94 in terms of amended rule 57H.
(ii) The period of acceptance of documents under rule 57H is being limited only upto 31.12.94 by the concerned Asstt. Collectors.
2. Both these points, raised by the Chamber, have been examined in the Board. It is clarified that the Board”s Circular No. 76/76/94-CX dated 8.11.94, read with Notification No. 64/94-CE(NT) dated 7.11.1994 was issued to enable the Asstt. collectors to accept the specified documents which may have been issued up to 31.12.1994. As such the Modvat Credit Against invoices issued by the specified persons during the period 1.4.1994 and 11.5.1994 in respect of inputs lying in stock with them as on 31.3.1994 can be regularized if otherwise permissible in terms of Notification No. 64/94-CE(NT). The Board”s Circular dated 8.11.1994 may be applied in the light of the above clarification.
3. Accordingly as regards point (ii) it is clarified that credit under Rule 57H may be allowed if the invoices were issued by the specified persons upto 31.12.1994.
4. Trade and officers in field may be suitably informed. Please acknowledge receipt of this Circular.