Modvat credit inputs exclusion: value of inputs cleared on payment of duty excluded from aggregate clearances. The value of inputs on which Modvat credit has been taken and which are cleared as such on payment of duty are not to be regarded as goods manufactured by the assessee and therefore should not be included in the aggregate value of clearances for the purposes of the Small Scale Exemption Notification; this clarification is to be circulated to field formations and trade interests with acknowledgement.