Non-excisable goods from ship breaking permit full modvat/cenvat credit on the ship without reversal under excise credit rules. Goods recovered in ship breaking that do not fall under the shipbuilding tariff are non-excisable goods, and the whole ship (except ship stores) is an input to ship breaking; therefore the rule denying credit for inputs used in exempt or nil-rated finished excisable goods does not apply and the full modvat/cenvat credit on the ship is available without reversal.
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.
Non-excisable goods from ship breaking permit full modvat/cenvat credit on the ship without reversal under excise credit rules.
Goods recovered in ship breaking that do not fall under the shipbuilding tariff are non-excisable goods, and the whole ship (except ship stores) is an input to ship breaking; therefore the rule denying credit for inputs used in exempt or nil-rated finished excisable goods does not apply and the full modvat/cenvat credit on the ship is available without reversal.
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