| Date: |
25-09-1998
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| Notification No: |
Central Excise Circular No 424/1998
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| Issuing Authority: |
Central Excise
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| Type: |
Circular
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| File No: |
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| Subject: |
Admissibility of Modvat credit on intermediate goods under Rule 57 H of the Central Excise Rules, 1944
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Admissibility of Modvat credit on intermediate goods under Rule 57 H of the <a href='http://www.eximguru.com/exim/central-excise/excise-rules.aspx'>Central Excise Rules</a>, 1944
Circular No. 424 dated 25th September 1998
It was brought to the notice of the Board that consequent upon rescinding of Rule 56 A of the Central Excise Rules, 1944 containing the provisions of Proforma credit end extension of Modvat credit to the goods covered under the said Proforma credit with effect from 20th May, 1944 certain intermediate products such as covered rubber thread, covered spandex yarn etc. which arose during the course of manufacture of final products remained outside the purview of the provisions of Modvat credit. Accordingly, Modvat credit was denied to such goods. This anomaly was rectified prospectively by issue of Notification No. 62/94-CE (NT dated 21.10.1994. Representations, were received by the Central Government to allow Modvat credit to the aforesaid types of goods during the intervening period i.e. 20.05.1994 to 20.10.1994.
2. To obviate the genuine difficulties of the Trade, the Central Government decided to amend Rule 57 H of the Central Excise Rules, 1944 and issue Notification No. 35/98-CE (NT) dated 01.09.1998 in respect of goods mentioned in the above paragraph during the period 20.05.1994 to 20.10.1994.
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