Circular No. 274 dated 21^st November 1996

I am directed to draw your attention to the revised proforma of the Personal Ledger Account (PLA) annexed with Circular No. 249/83/96-CX dated 11th October, 1996 and to say that no notification is being issued for revised proforma because the existing proforma was also prescribed only be an executive instruction by virtue of power conferred on the Commissioner of Central Excise by Rule 9 and Rule 173G (1), to prescribe the form and manner of maintaining the PLA . For the purpose of uniformity the revised proforma has been prescribed by the Board in the aforesaid circular, which is again enclosed herewith with certain minor corrections, which are as follows:

(1)      The Word and figure 'Annexure 5' appearing on top of the proforma have been omitted being redundant.

(2)      The expression 'Collectorate' mentioned inadvertently has been replaced by the expression 'Commissionerate'.

(3)      The term 'Circle' has been deleted.

(4)      In Column 4, for the word CETH, the words 'Central Excise Tariff Sub-Heading No'. has been substituted.

(5)      The words 'Cases on Commodities' is a typological error. It should be read as 'Cess on commodities' as heading for Col. 10.

2.     It may also be clarified to the trade that while making credit entries, name of credit documents, i.e. T.R. 6 or cheque (wherever permitted in exigent situations) should be mentioned in Col. (2) and its number and date in Col. 3.

3.     In cases where the Commissioners have prescribed any additional procedures/ modifications to suit the local requirements, the same may be reported to the Board with reasoning at the earliest.

4.     Necessary trade notice may be issued prescribing the proforma for PLA if not already done.

5.     Trade and field formations may be informed accordingly.

Enclosure to CBEC -Circular No. 274 dated 21^st November 1996

(Original/ Duplicate/ Triplicate)

Personal Ledger Account for the month of  _____________ 19 ____________

Name of the factory with address and Registration _____________________________

Commissionerate:

Division:

Range: 
M/s____________________________ Address ___________________________________ EC Code No. ____________________

Circular No. 275 dated 26^th November 1996

I am directed to invite attention to the various points raised with regard to availing of credit under the Modvat Scheme, documentation and procedure to be followed. In this connection the points raised by trade and the Commissioners and the Clarification thereof are as follows:

Point - I

Whether depots/ consignment agents of a manufacturer are required to give certificate stipulated under notification No. 27/96-CE (NT) dated 31.08.1996.

Clarification

There is no need for giving certificate in case of invoices issued by depots/ consignment agents of manufacturer.

Point - 2

Whether re-credit under Rule 57 F (3A) could be taken in PLA account where debit has been made from the said accounts.

Clarification

A manufacturer is allowed to take credit in PLA account only on the strength of either TR-6 challan or on a specific order given by the proper officer in cases like refund/ rebate etc. As such on return of the processed goods from the job worker, recredit can be taken of the equivalent amount in RG-23A Part- II account only, irrespective of the fact whether at the time of clearance of inputs/ partially processed inputs, the amount was debited through PLA. Board therefore reiterates the clarifications already given vide TRU Circular F.No. B-42/ 1/ 96-TRU dated 31.8.96.

Point - 3

Whether the value of inputs or the partially processed inputs for the purpose of debiting an amount equal to 10% of the value of such inputs or partially processed inputs under Rule 57F (3A) (i) should also include the value of inputs used during such processing on which on credit has been availed.

Clarification

If some inputs on which no credit has been taken are also cleared along with those inputs on which credit has been taken, there is no need of taking into consideration the value of inputs which are exempt or on which no credit has been taken. However, in the case of partially processed inputs it would be appropriate to debit the amount equal to 10% of the total value of partially processed inputs cleared for job work even if such partially processed inputs contain some inputs on which no credit has been taken.

Point - 4

Whether the 6 months period for the purpose of taking credit shall be computed from the date of payment of duty in case of imported inputs or the date of filing bill of entry.

Clarification

The period of 6 months should be computed from the date of payment of duty.

Point - 5

What should be the date for computing 6 months period to avail the credit under Rule 57 G where-

(i)       Transporters copy of the invoice is lost and the credit in permitted after a period of 6 months.

(ii)      Credit is taken under rule 57E of duty paid on a date after 6 months of duty paid originally.

Clarification

(i) & (ii). 6 months period may not apply in such cases as restriction of 6 months is applicable only to those cases where the assessee himself takes/ avails the credit. It would be however appropriate to take credit in such cases within 6 months of the date of permission given by the Asstt. Commissioner on the strength of original copy (where duplicate copy is lost). Similarly credit can be taken within 6 months of the date of issue certificate under Rule 57E by the Range Superintendent.

Point - 6

a request has been made to provide a procedure where the inputs are imported in the name of manufacturer who instead of availing the credit, transfers such inputs to his sister unit.

Clarification

The procedure prescribed by the Board under circular No. 179/ 13/ 96-CX dated 29.2.96, in case of the bill of entry in the name of registered office/ head office can be followed mutatis- mutandis in these cases also.