Modvat credit restriction clarified: nil rated exempt scrap does not qualify for input credit under the deemed credit order. The amendment clarifies that waste and scrap of iron and steel (Heading 72.03) and ship breaking scrap (Heading 72.15), which have been exempted to nil excise duty, do not qualify for Modvat input credit; it affirms that no Modvat credit shall be available in respect of such nil rated exempt scrap and directs revenue and manufacturers to apply the deemed credit order accordingly.