Modvat credit on textile fabrics: differentiated actual and deemed input credits govern composite mills, job work and independent processors. Extension of the Modvat credit scheme to textile fabrics from 4 September 1996 sets distinct treatments: composite mills that perform spinning plus in house weaving/knitting/crochet and processing may claim actual input duty credit and are not liable to duty on captively consumed yarn; multi locational mills pay duty at yarn stage while their separate processors can claim deemed credit; movement under rule 96D is withdrawn and processed fabrics must move under duty paying documents.
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 on textile fabrics: differentiated actual and deemed input credits govern composite mills, job work and independent processors.
Extension of the Modvat credit scheme to textile fabrics from 4 September 1996 sets distinct treatments: composite mills that perform spinning plus in house weaving/knitting/crochet and processing may claim actual input duty credit and are not liable to duty on captively consumed yarn; multi locational mills pay duty at yarn stage while their separate processors can claim deemed credit; movement under rule 96D is withdrawn and processed fabrics must move under duty paying documents.
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