Circular No. 318/34/97-CX dated 26/6/97

Sub: Reversal of Modvat credit and payment of interest where exports were effected under Value Based Advance Licence before 31.1.97 under Special Scheme - Issue of Certificate

It has been brought to the notice of the Board that certificates are not being issued to the exporters, who have reversed the modvat credit in terms of the instructions and formula contained in Board"s Circular No.285/1/97-CX dated 10th January, 1997. It has also been suggested that such certificates should contain such particulars which may enable the concerned Custom -Houses to expeditiously close the DEEC Book.

2. The matter has been examined by the Board.

3. It has been decided that in cases where a manufacturer-exporter, or a merchant-exporter whose supporting manufacturers" name is mentioned in. DEEC Book/Shipping Bills, approach the jurisdictional Assistant Commissioners of Central Excise with particulars in the format enclosed as Annexure-A, the same may be verified by the Assistant Commissioner with reference to the records the exporter to ascertain its correctness in terms of the formula prescribed in the Circular dated 10.1.97. A certificate should be issued by an officer of the rank of Assistant Commissioner on the body of the document containing the aforesaid particulars with initials on each of the leaf, indicating whether credit has been correctly reversed as per the formula and interest has been fully paid. Where reversal is not in conformity with the Board"s formula, the same can be got determined by Cost Accountant nominated by the Chief Commissioner under section 14A of Central Excise Act, 1944 before issue of any such certificate. In case of part reversal or part payment of interest, the same can be brought out clearly in such certificates.

4. In the cases where credit is reversed on actual basis, such certificates should be issued only after verification of the records of the exporter by a Cost Accountant nominated by the Chief Commissioner under section 14A of the Central Excise Act, 1944.

5.It is also clarified that where any certificate has already been issued to an exporter and accepted by the Customs, no fresh certificate is required to be issued.

Sd/-
(I.P. Lal)
Deputy Secretary (CX.6)

F.No.209/48/95-CX.6

						          			Annexure A

Name & Address of the Exporter _____________________
Central Excise Commissionerate.______________________

Division ________________ Range ___________________


Shipping	S.No.& date of AR4A		Amount of Modvat credit
Bill No.	covered by Shipping Bill	required to be reversed in  
		mentioned in Col (1)		terms of formula

(1)		(2)				(3)


Amount of	Amount of Interest		Amount of interest	
modvat		required to be			actually deposited 
actually	deposited			with particulars &
reversed                                        date of TRG Challans

A. Amount                         
            							  
B. Particular of 
   entry in
   RG23A/PLA 

C. Date

(4)		(5)				(6)

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