Specified intermediate goods exempted if captively consumed in the manufacture of specified final products - Consequent upon extension of Modvat Scheme to goods earlier covered under Proforma Credit Procedure - 121/94 - Central Excise - Tariff

Government Exempts Intermediate Goods from Excise Duty When Used in Same Factory Under Modvat Scheme Extension

The Central Government issued a notification exempting specified intermediate goods from excise duty if they are used in the manufacture of designated final products within the same factory. This exemption follows the extension of the Modvat Scheme, previously under the Proforma Credit Procedure, and applies to goods listed under specific headings in the Central Excise Tariff Act, 1985. The exemption does not apply to inputs used for manufacturing final products that are exempt from excise duty or have a 'Nil' duty rate, except when cleared to certain special units. Compliance with Chapter X of the Central Excise Rules, 1944, is required if inputs are used in a different factory.