Measures to avoid misuse of Modvat credit

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....directed to state that the report of the C&AG of India in the year ending 31-3-1992 (No. 4 of 1993) has commented adversely on fradulent availment of credits. It has been noticed that parties have taken modvat credit without furnishing the original duty-paying documents and the credit taken is a multiple of the amount mentioned in the gate passes. 2.(i) The Board had issued instructions vide Ci....

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.... is also noticed that no time limits exist for verification of declaration filed by the assesses under Rules 57G, 57F and 57H of the Central Excise Rules, 1944. A time limit of 3 months from the date of the receipt of declaration is being fixed. For cent - per - cent checks by the Superintendent of Central Excise and 20% of such declaration by the Assistant Collector of Central Excise. The Collect....

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.... and take serious view of the Central. Excise has not done so within atleast 3 months of receipt of such from documents only with the RT 12 with the, RG 23A. This should be attended form irrespective of the fact as to whether the assessment is being done provisionally or finally. 5. A special audit of units availing of Modvat Credit of Rs.10 lakhs above in a year should be conducted in all Coll....