Modvat credit adjustment requires consignee debit from duty credit ledger before refund payment is released. Procedure requires the Assistant Collector at the input origin to sanction refunds but delay payment while informing the consignee's officer of the refund amount; the consignee debits that amount from its duty credit ledger or provisional ledger and informs the Assistant Collector; payment is made only after all concerned officers confirm the debits, ensuring adjustment of Modvat credit consequent upon refunds.
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 adjustment requires consignee debit from duty credit ledger before refund payment is released.
Procedure requires the Assistant Collector at the input origin to sanction refunds but delay payment while informing the consignee's officer of the refund amount; the consignee debits that amount from its duty credit ledger or provisional ledger and informs the Assistant Collector; payment is made only after all concerned officers confirm the debits, ensuring adjustment of Modvat credit consequent upon refunds.
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