Modvat credit withdrawal requires recovery of duty on unutilised inputs and clearance treated as deemed manufacture. Withdrawal of Modvat credit for aerated water requires recovery of duty on inputs unutilised as on the withdrawal date. Under Rule 57F(1) credit may be used for duty on the final product or on inputs cleared for home consumption or export as if manufactured in the factory. If credit was already applied to duty on aerated water without using the inputs, or if inputs are cleared instead of used, duty must be collected on those inputs. Recovery is to be effected through RG 23A credit balance or through the PLA.
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 withdrawal requires recovery of duty on unutilised inputs and clearance treated as deemed manufacture.
Withdrawal of Modvat credit for aerated water requires recovery of duty on inputs unutilised as on the withdrawal date. Under Rule 57F(1) credit may be used for duty on the final product or on inputs cleared for home consumption or export as if manufactured in the factory. If credit was already applied to duty on aerated water without using the inputs, or if inputs are cleared instead of used, duty must be collected on those inputs. Recovery is to be effected through RG 23A credit balance or through the PLA.
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