Regarding endorsement of transferability on Duty Free Value Based Advanced licences in, cases where the exports have claimed the benefits of MODVAT Credit- Clarification

Policy Circular No. 8 dated 1^st July 1997

Your kind attention is invited to Policy Circular No. 15/ 96-97 dated 9.9.1996.Vide paragraph 4(;) (b) of the Circular it has been provided that where MODVAT/ input stage credit as been reversed after clearance of the export goods from the factory but prior to exports or after making ports, in such cases, the redemption of BG/ LUT or to give permission) for waiver of with or without transferability may be kept in abeyance until further orders.

2.���� In modification of the Policy Circular No. 15/ 96-97 dated 9.9.1996. It has been decided in consultation with Deptt. of Revenue to replace the above referred Paragraph 4(I) (b) with the following:

"Where MODVAT/ input stage credit has been reversed after clearance of the export goods from the factory but prior to export or after making exports. Such exports can be accepted towards discharge of export. Obligation on production of certificate from the concerned Asstt. Commissioner of Central Excise that MODVAT amount has been reversed by 31.1.1997 and the interest @ 20% p.a. for the duration the MODVAT amount was retained by such exporters has been paid from the date of export to the date of reversal of MODVAT Credit. Such certificate can be accepted from Manufacturer exporters or Merchant exporters only who indicated details of supporting manufacturer(s) at the time of the issuance of the licence".

3.���� This issues with the approval of Director General of Foreign Trade.