Fraudulent Modvat credit prevention: verify dealer premises and transport records before allowing credit transfer. Directives require verification that Central Excise registration is not exploited merely to transfer Modvat credit by persons lacking proper business premises or arrangements for receipt, storage and onward despatch of excisable goods. Range officers, Audit and Preventive staff must check physical premises and transport/documentary records to ensure registered dealers actually deal in excisable goods and are not name lenders or fictitious entities; selective checks may be conducted with written permission of the jurisdictional Assistant Collector.
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.
Fraudulent Modvat credit prevention: verify dealer premises and transport records before allowing credit transfer.
Directives require verification that Central Excise registration is not exploited merely to transfer Modvat credit by persons lacking proper business premises or arrangements for receipt, storage and onward despatch of excisable goods. Range officers, Audit and Preventive staff must check physical premises and transport/documentary records to ensure registered dealers actually deal in excisable goods and are not name lenders or fictitious entities; selective checks may be conducted with written permission of the jurisdictional Assistant Collector.
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