Utilisation of MODVAT credit in respect of inputs on which credit is availed but the inputs are exported as such under bond - Regarding.

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....ubject: Utilisation of MODVAT credit in respect of inputs on which credit is availed but the inputs are exported as such under bond - Regarding.   It has been represented to the Board that the field formations have taken a view that credit on inputs  cleared as such for export under bond cannot be allowed to be utilised for payment of duty on final products cleared for home cons....

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....f duty will be allowed for utilising towards payment of duty of excise leviable on the final products. WHereas Rule 57F is a more specific provision regarding manner of utilisation of the inputs and the manner of utlisation of the credit allowed in respect of duty paid thereon. Rule 57F (1)(ii) permits removal of the inputs as such for export under bond. Proviso to Rule 57F(1)(ii) permits removal ....

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....e of inputs as such for export under bond can still be treated at par with 'final product' and the manner of utilisation of credit in such cases will be governed by the provisions of the proviso to Rule 57F(4). 4. It is also observed that in case such inputs are cleared o payment of duty by debit in RG-23A Part-II account by virtue of Rule 57F(4)(iii), the manufacturer will be entitled for....