Clarification reg. Reversal of Modvat Credit on non-excisable items removed from the ship in the process of breaking .

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....t Credit on non-excisable items removed from the ship in the process of breaking . In the budget of 1995, ship breading activity was defined as an activity of manufacture by virtue of note 7 in Section XV of the Schedule to the Central Excise tariff Act, 1985. consequent to this two questions arose: (i) Whether the items emerging during the course of ship breaking falling outside the ambit of Sec....

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....er, entire ship except ship stores are classifiable under 8908 is an input taking part in the activity of ship breaking under Rule 57A of the Central Excise Rules, 1944. Hence, the provisions of Rule 57C of the Central Excise Rules regarding the non-admissibility of modvat credit of duty paid on inputs going into finished excisable goods which are exempted from payment of duty or chargeable to n....