History

7.     MODVAT SCHEME ON INPUTS 7.1     Under Modvat scheme, character reference is allowed for condition barter paid on specify inputs for manufacture. This quote deal be utilised towards payment of duty on specified outputs, pillowcase to fulfilment of certain conditions. Some of the cases where wrong/ second availment of quotation was noniced in audit are narrated down the stairs:- 7.2     Availment of credit without valid documents As per proviso below notice 57G (2), no credit shall be taken unless the inputs are get in the factory under an invoice issued under territorial dominion 52 A, or an AR-1, or Bill of Entry or every other document as may be decreed by the Government by notification in the formal Gazette in this behalf, evidencing payment of duty on such(prenominal) inputs. Bombay I Commissionerate in its Trade Notice No.57/87 date stamp 10 August 1987 clarified that Modvat credit can be availed on endorsed bill of gateway if the goods a re bought by the true(a) exploiter from the importer on high sea gross gross sales introduction. However, where the goods are not purchased on high sea sales footing, a hyponym security measure is necessary to be obtained against such bill of entry for availing Modvat credit.

i)     Two assessees availed of credit of countervailing duty on the basis of endorsed bills of entry received from the importers where the goods were not purchased by the assessees on high sea. Availment of Modvat credit of Rs.4.16 crores during 1990-91 to 1992-93 on endorsed bills of entry in respect of inputs not purchased on high sea and without obtaining subordinate certificate, was not in prescr ibe. On this being pointed out (August 1994! ), the Ministry admitted (July 1996) the remonstrance in one case involving duty of Rs.4.03 crores plainly declared (November 1996) in the second case that non issue of the subsidiary certificate by the superintendent was a procedural lapse. ii)     quin assessees in five Commissionerates availed of Modvat credit ofRs.48.61 lakhs during September 1988 to December 1993 on the basis of photo copies...If you want to get a replete essay, order it on our website: OrderEssay.net

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