Circular No.62/62/94-CX dated 20/9/94
RT 12 returns assessment procedure
Subject:- Instructions to field formations on the changes brought about in Central Excise
Procedure
A number of changes have been made in Central Excise Procedures since the
presentation of the Budget 1994-95. They include :-
(i) Assessment on invoice value;
(ii) Extension of the Modvat Scheme to invoices issued by dealers; and
(iii) Modvat on capital goods obtained on hire-purchase or lease.
2. As regards assessment based on invoice a Circular has already been issued from
F.No.212/3/94-CX-6 (No.45/45/94-CX-6 dated 4.7.1994) requesting to furnish evaluation
reports on assessments of RT-12 returns for the month of April-May, 1994 alongwith
suggestions. Except from few Collectors, no such report has been received.
3. As regards (iii) above, the issue of difficulties faced in the implementation of
the aforesaid procedures was also highlighted in the Customs and Central Excise
Advisory Council"s meeting held on 14.9.1994 wherein it was informed by trade
associations that wherever the objections are taken against the assegsee"s claims of
Modvat on capital goods the same should be discussed with the jurisdictional Collector
of Central Excise. This suggestion has been accepted by the Board.
4. Since the amount involved in Modvat on capital goods may be substantial and at the
same time no undue harassment is to be caused to manufacturers, Board has decided that
instructions may be issued to field formations to the effect that assessment of RT-12
returns should be done expeditiously and that too only after verification of the duty
paying documents on the capital goods, the modvat credit accumulated, the goods
produced during the month by use of the capital goods, the duty calculated on the
latter and the set off of this duty against the accumulated modvat credit.
5. An evaluation report alongwith views and suggestions, if any and the statistical
data of Modvat credit taken on capital goods and misuse detected, if any, should be
furnished to the Board within a fortnight of receipt of this Circular and thereafter
on monthly basis.
Sd/-
(I.P.Lal)
Deputy Secretary to the Government of India
F.N0.267/83/94-CX-8
Presented by eximkey.com