Modvat procedure: manufacturers may avail Modvat alongside full exemption where separate accounts show input credit used only for dutiable products. The Board held that there is no bar to simultaneous availment of Modvat and full exemption provided input credits are taken only for inputs used in manufacture of excisable final products and are applied to duty payment for those products; manufacturers must maintain separate accounts from raw material to finished goods to demonstrate that credit relates solely to dutiable production. This applies to aluminium circles, copper winding wires, and similarly situated commodities, and past cases are to be settled accordingly.
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 procedure: manufacturers may avail Modvat alongside full exemption where separate accounts show input credit used only for dutiable products.
The Board held that there is no bar to simultaneous availment of Modvat and full exemption provided input credits are taken only for inputs used in manufacture of excisable final products and are applied to duty payment for those products; manufacturers must maintain separate accounts from raw material to finished goods to demonstrate that credit relates solely to dutiable production. This applies to aluminium circles, copper winding wires, and similarly situated commodities, and past cases are to be settled accordingly.
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