Modvat credit declaration: paying duty on first clearances permits buyers to claim notional input credit despite absent invoices. Small-scale units filed input credit declarations under Modvat but did not avail credit because inputs were bought without duty-paying documents; nevertheless they paid duty on initial clearances under the provision meant for manufacturers who avail credit to enable purchasers to claim notional input credit. Audit contends the higher initial-clearance duty applies only when the manufacturer actually avails input credit, and that units not availing should follow the alternative clearance provision. The Board has sought reports and views from Collectorates.
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 declaration: paying duty on first clearances permits buyers to claim notional input credit despite absent invoices.
Small-scale units filed input credit declarations under Modvat but did not avail credit because inputs were bought without duty-paying documents; nevertheless they paid duty on initial clearances under the provision meant for manufacturers who avail credit to enable purchasers to claim notional input credit. Audit contends the higher initial-clearance duty applies only when the manufacturer actually avails input credit, and that units not availing should follow the alternative clearance provision. The Board has sought reports and views from Collectorates.
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