| Date: |
21-01-1998
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| Notification No: |
Central Excise Circular No 374/1998
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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: |
Regarding assessment of 'UNO' model cars manufactured by M/s. Premier Automobiles Ltd. - Reference from Commissioner of Central Excise, Mumbai - II
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Regarding assessment of 'UNO' model cars manufactured by M/s. Premier
Automobiles Ltd. - Reference from Commissioner of Central Excise, Mumbai - II
Circular
No. 374 dated 21st January 1998
It
has been brought to the notice of the Board that Central Excise Authorities are
not allowing MODVAT credit of the entire CVD paid on the car kit imported in
CKD/ SKD condition assessed to duty as a complete car at the rate of 40% by
the Customs Authorities. It has been further reported that some Commissionerates
are restricting the MODVAT credit on CKD car packs to the tune of 15% whereas in
other Commissionerates, MODVAT credit is being denied altogether.
2.
Matter has been examined in the Board. I am directed to say that the
goods have been assessed to duty by the Customs Authorities as per the rate
applicable to the complete car when imported in CKD/ SKD condition into a car
amounts to manufacture as per the Note 6 of Section XVII of the Central Excise
Tariff Act, 1985. Hence, the CKD/SKD car packs are inputs for the fully
assembled car and accordingly, MODVAT credit of entire CVD paid is admissible on
such car packs imported in CKD/SKD condition. The Central Excise Authorities
have no power to restrict the MODVAT credit of the entire duty paid in this case
as per the MODVAT Rules.
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