Admissibility of MODVAT/CENVAT credit on inputs used in the manufacture of finished goods on which duty has been remitted.

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....ubject cited above and to say that a doubt has arisen whether Modvat/Cenvat credit is admissible on inputs used in the manufacture of goods on which duty has been remitted. 2. In this regard Board's attention has been drawn to a decision of CEGAT in the case of M/s. KIRLOSKAR ELECTRIC Co. Vs. CCE , Bangalore. In this case, CEGAT has held that the assessee is entitled to Modvat credit on the input....

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....t of duty paid on the inputs contained in finished products on which duty remission has been granted shall be admissible and reversal thereof shall not be necessary. However, before granting remission of duty on any finished products destroyed or damaged in fire, accident etc., it should be ensured that the insurance amount claimed by the assessee does not include the duty element of the inputs us....