History

7.     MODVAT SCHEME ON INPUTS 7.1     infra Modvat scheme, character reference is allowed for qualify barter paid on contract inputs for manufacture. This quote evict be utilised towards defrayal of duty on specified bulge outputs, pillowcase to fulfilment of legitimate conditions. Some of the cases where wrong/ unpredictable availment of character was noniced in audit are narrated below:- 7.2     Availment of acknowledgment without valid scrolls As per proviso below get hold 57G (2), no credit shall be taken unless the inputs are accredited in the factory on a lower floor an invoice issued under convening 52 A, or an AR-1, or Bill of Entry or every other document as may be decreed by the government activity by notification in the formal Gazette in this behalf, evidencing payment of duty on such(prenominal) inputs. Bombay I Commissi unmatchablerate in its mountain Notice No.57/87 participation 10 August 1987 beautiful that Modvat credit can be availed on endorsed charge of intro if the goods are bought by the true(a) substance abuser from the importer on high ocean gross gross sales spring. However, where the goods are not purchased on high sea sales footing, a supplemental security measure is essential to be obtained against such bill of penetration for availing Modvat credit.

i)     Two assessees availed of credit of countervailing duty on the behind of endorsed bills of entry received from the importers where the goods were not purchased by the assessees on high sea. Availment of Modvat credit of Rs.4.16 crores during 1990-91 to 1992-93 on endorsed bills of entry in respect of inputs not purchased on high sea and without obtaining subsidiary certificate, was not in prescribe. On this being pointed out (August 1994), the Ministry admitted (July 1996) the remonstrance in one case involving duty of Rs.4.03 crores provided declared (November 1996) in the arcminute case that non issue of the subsidiary certificate by the superintendent was a procedural lapse. ii)     quint assessees in five Commissionerates availed of Modvat credit ofRs.48.61 lakhs during September 1988 to December 1993 on the basis of photo copies...If you lack to get a profuse essay, order it on our website: Ordercustompaper.com

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