| Date: |
10-11-1994
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| Notification No: |
Central Excise Circular No 77/1994
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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: |
Instructions regarding denial of deemed credit to ship-breakers
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|
Instructions regarding denial of deemed credit to ship-breakers
Circular
No. 77 dated 10th November 1994
It
has been brought to the notice of the Board that scrap generated by breaking of
a ship etc. is not being allowed Deemed Modvat credit by certain field
informations. The ship-breakers have also represented to the Board. The matter
has been examined and the following instructions are issued:
Rule
57G of the Central Excise Rules 1944, stipulates that the Government has the
power to allow deemed credit having regard to the period that has elapsed since
the duty of excise was imposed on any inputs, the position of deemed and supply
of the said inputs in the country and any other relevant considerations. If no
duty is imposed on any of the inputs then the provisions of Rule 57-G cannot be
invoked to allow deemed credit. Since the scrap cleared by the ship-breakers
have not suffered the duty, it would not be correct to allow deemed credit on
such scrap.
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