MODVAT credit disallowed where depreciation claimed on the duty component; notify excise to withdraw credit. A MODVAT mechanism allows credit of duty on capital goods to offset excise on final products provided the manufacturer does not claim depreciation under Section 32 for the portion of cost representing that duty; a declaration to the Assistant Collector is required. The Board instructs that if depreciation is claimed on the duty component after credit was availed, Central Excise authorities must be notified to withdraw the credit.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
MODVAT credit disallowed where depreciation claimed on the duty component; notify excise to withdraw credit.
A MODVAT mechanism allows credit of duty on capital goods to offset excise on final products provided the manufacturer does not claim depreciation under Section 32 for the portion of cost representing that duty; a declaration to the Assistant Collector is required. The Board instructs that if depreciation is claimed on the duty component after credit was availed, Central Excise authorities must be notified to withdraw the credit.
Full Summary is available for active users!
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
of 
Join Channel
TaxTMI 
