Circular No. 151/62/95-CX dated 4/10/95
Subject:Issue of certificates by Central Excise Officer regarding non-
availment of MODVAT Credit - Clarification regarding.
I am directed to refer to Board"s Circular No. 116/27/95-CX issued in F.No.
209/6/95-CX.6 dated 6th April, 1995 on the above subject whereby it was clarified that
the requisite certificates on AR-4/AR-4A may be issued by the Range Superintendent in
those cases where the manufacturer may have obtained the MODVAT credits as and when
the inputs were received but the same was reversed before the final products have been
cleared out of the factory for export under AR-4/AR-4A. It was clarified that no such
certificate should be issued for the time-being, in those cases where a manufacturer
has obtained the MODVAT credit before the export but reversed the same subsequent to
the clearance of the goods from the factory or export.
2. Some exporters have expressed difficulties that although they are reversing the
MODVAT Credit at the end of every month (before filing of RT- 12), the Range
Superinteridents refuse to give the requisi te certificate on the AR4/AR4A in view of
the aforementioned Board"s instruction dated 6.4.95. The Customs-Authorities have also
refused to clear the export consignment against advance licences on the same ground.
3. The matter has been examined by the Board. To obviate the difficulty being faced by
the exporters, it is further clarified that in case the MODVAT credit isreversed at
the end of every month (before filing RT-12) for all the exports made during that
month, the requisite certificate regardirig non-availment of MODVAT credit may be
issued by the Range Superintendent on the body of the exporter"s copy of AR4/AR4A or
on a copy thereof attested by the Range Officer after necessary verification of range
records including RG-23A records, invoices submitted for defacement and the RT-12
returns aswell as the Range"s copy of the relevant AR4/AR4A.
Sd/-
(Navneet Goel)
Under Secretary to the Government of India
F.No. 209/6/95-CX.6Presented by eximkey.com