New Circular Enforces Rule 57G to Prevent Double Modvat Credit Claims with Strict Verification and Penalties for Misuse.

The circular addresses the misuse of Modvat credit by assessees who claim credit using both original and duplicate invoice copies, resulting in double credits for a single consignment through document falsification. Rule 57G mandates credit use only with duplicate invoices unless lost in transit, requiring Assistant Collector approval. The circular emphasizes the need for strict verification by officers to prevent revenue loss and mandates immediate verification and action against wrongful credit claims. Instructions are to be issued to field formations to ensure compliance and penalize misuse under existing legal provisions.

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