TaxTMI Login
Just a moment...
Press 'Enter' to add multiple search terms. Rules for Better Search
When case Id is present, search is done only for this
of 
of 
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of of 
All Case Laws
of of All Case Laws
Note
Bookmark
Share
Don't have an account? Register Here
of <h1>Tribunal clarifies MODVAT Credit rules on duty documents, inputs for manufacturing.</h1> <h3>KERALA STATE ELECTRONIC CORPN. Versus COLLECTOR OF C. EX., KOCHI</h3> KERALA STATE ELECTRONIC CORPN. Versus COLLECTOR OF C. EX., KOCHI - 1996 (84) E.L.T. 44 (Tribunal) Issues Involved: The denial of MODVAT Credit by the Collector of Central Excise, Kochi based on the restriction imposed under Notification 177/86 dated 1-3-1986, and the interpretation of Rule 57A regarding the extent of credit allowed.Summary:1. The lower appellate authority restricted the MODVAT Credit to the excise duty payable on T.V. picture tubes, based on Notification 177/86, limiting the credit to duties of excise on the goods.2. The appellants contended that they are entitled to MODVAT Credit equivalent to the duty reflected in the duty paying documents received by them, regardless of the duty assessed by the jurisdictional authorities over their factory. They argued that any refund received could be adjusted as per Rule 57E.3. The Departmental Representative argued that MODVAT Credit should be limited to the duty payable on the goods as per Notification 177/86 issued under Rule 57A.4. The Tribunal held that Rule 57A allows credit of duty paid on inputs used in manufacturing specified finished products, subject to compliance with the provisions of the Rules. The MODVAT Scheme does not empower authorities to reassess duty on inputs for credit purposes. Any discrepancies in duty paid on inputs can be addressed through Section 11A and 11B of the Central Excises and Salt Act, with a mechanism for varying credit under Rule 57E. The Tribunal concluded that MODVAT Credit should be based on the duty paying documents received, setting aside the lower authority's order and allowing the appeal with consequential relief.
TaxTMI 