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Regarding Modvat on invoices issued by the consignment agents between
01.04.1994 to 03.07.1994 - Point No. 6 of the Chief Commissioner's Conference
Circular
No. 165dated 18th December 1995
Representations
have been received that invoices issued by consignment agents during the period
01.04.1994 to 03.07.1994 are not being considered as valid duty paying document
for the purpose of availment of Modvat credit under rule 57G of the Central
Excise Rule, 1944 as they were not covered within the Notification No. 15/94-CE
(NT) dated 30.03.1994.
2.
In this regard Board's attention has been drawn to Rule 57H as amended
vide Notification No. 64/94-CE (NT) dated 07.11.1994. The amended rule inter
alia permitted acceptance of 'any invoice' or 'any document' as may be
prescribed by the Central Board of Excise & Customs as a valid document
under rule 57G of the Central Excise Rules, 1944.
3.
It has been reported that 'consignment agents' are working on behalf of
the manufacturers and are mainly responsible for custody and documentation and
issue the invoice for sale of goods on their behalf. Sale proceeds are remitted
in such cases to manufacturer's account and at the same time goods are duty
paid.
4.
The issued has been examined by the Board.
5.
By virtue of he powers conferred by rule 57H of the Central Excise Rules,
1944. The Central Board of Excise and Customs hereby specifies the invoices
issued by the consignment agents as a valid document for the purpose of allowing
Modvat credit subject to the following conditions: -
(i)
Such invoices should contain the details as referred to in the
Notification No. 15/1594-CE (NT) dated 30.03.94 and Notification No. 21/94-CE
(NT) dated 12.05.1994.
(ii)
The persons issuing such invoices/ documents have got themselves
registered under rule 174 read with rule 57G of the Central Excise Rules, 1944
consequent to the issue of Notification No. 32/94-CE (NT) dated 04.07.1994.
(iii)
While allowing such credit the Assistant Commissioner of Central Excise
shall verify or cross- check the genuineness of the invoices issued and duty
paid character of the inputs.
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