Circular No. 204/38/96-CX
dated 26/4/96
F.No. 267/4/96-CX.8

Government of India

Ministry of Finance

Department of Revenue, New Delhi

Subject : Modvat credit for the period 1/4/94 to 11/5/94

Representations have been received from the Trade and various Chambers of Commerce that invoice issues under rule 57G against Gate – passes are not being recognised as duty paying document for availing credit.

2. It has been reported that Notification No. 15/94-CE (NT) dated 30.3.94. prescribed the invoice issued by –

(i) a manufacturer from his factory or depot; or

(ii) Wholesale distributor/ dealer of a manufacturer who has bought the excisable goods either from the manufacturer at the factory or from the manufacturer”s depot; or

(iii) an importer from his godown containing the rate of amount of duty and details of Sl.No. and date of and quantity of inputs mentioned in the invoice issued under rule 52A/ Bill of Entry, as a document for availment of credit.

3. The aforesaid notification however did not cover the situations where inputs where lying in stock as on 31.3.94 or said inputs were in transit on which duty was paid under Gate passes issued prior to 1st april, 1994 and 11th May, 1994. This was though rectified by Notification No. 21/94-CE (NT) which prescribed the invoice issued against the gate passes as a document for the purpose of rule 57G, but credit has been denied for the period 1.4.94 to 11.5.94.

4. Board has examined the issue with a view to resolve the difficulties arising out of the budgetary changes in 94-95 relating to acceptance of “invoice” as proper document for the purpose of Modvat credit and issue of Notification No. 15/94-CE (NT) dated 30.3.94. Board (by virtue of the powers conferred by Rule 57H of the Central Excise Rules) hereby prescribes the invoice/document issued against the gate pass for the period 1.4.94 to 11.4.94* by-

(i)  a manufacturer from his factory;
(ii) a manufacturer from his depot;
(iii) a wholesale distributor/ dealer of the manufacturer as valid document for the purpose of modvat for the purpose of allowing credit under said rule.

5  It is clarified that such invoice should contain the details as referred to in Notification 15/94-CE (NT) and Notification 21/94-CE (NT).

(Mallika Arya)
Under Secretary to the Govt. of India
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