| Date: |
19-03-1996
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| Notification No: |
Central Excise Circular No 185/1996
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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: |
MODVAT credit on capital goods to 100% EOUs seeking premature debonding
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MODVAT credit on capital goods to 100% <a href='http://www.eximguru.com/exim/eou/default.aspx'>EOU</a>s seeking premature debonding
Circular
No. 185
dated 19th March 1996
1.
Representation have been received from 100% EOUs seeking premature
debonding and converting to Domestic Tariff Area Units regarding availment of
Credit on countervailing duty paid by them at the time of debonding.
2.
It has been reported that on premature debonding the concerned units
pay the appropriate duties of Customs & Central Excise on capital goods
purchased free of duty (indigenous and imported) at the time of initial setting
up of the EOU. Hence, it has been requested that the CVD Component of the import
duty so discharged on such capital goods should be allowed to be motivated when
it starts production as a domestic unit.
3.
The matter has been examined by the Board. I am directed to say that
MODVAT Credit can be allowed to the extent CVD paid on imported capital goods or
procured from domestic market.
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