Modvat credit irregularities: require prompt verification and immediate reversal of ineligible credits to prevent revenue loss. High incidence of ineligible Modvat credit on capital goods and non-capital items has been identified, including credits claimed on goods not used in production or on commercial invoices contrary to the scheme and Rule 57Q. Field formations are directed to expedite verification of declarations, preferably within three months, and forward copies to Divisional Assistant Commissioners for detection of irregular credit. Credits outside the Modvat scheme must be reversed forthwith rather than deferred pending protracted quasi-judicial proceedings.
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Modvat credit irregularities: require prompt verification and immediate reversal of ineligible credits to prevent revenue loss.
High incidence of ineligible Modvat credit on capital goods and non-capital items has been identified, including credits claimed on goods not used in production or on commercial invoices contrary to the scheme and Rule 57Q. Field formations are directed to expedite verification of declarations, preferably within three months, and forward copies to Divisional Assistant Commissioners for detection of irregular credit. Credits outside the Modvat scheme must be reversed forthwith rather than deferred pending protracted quasi-judicial proceedings.
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