Financial Daily from THE HINDU group of publications
Monday, Oct 04, 2004
Financial Daily from THE HINDU group of publications Monday, Oct 04, 2004 |
||
|
|
||
|
Industry & Economy
-
Excise and Customs Ministry reverses cenvat credit norm K.R. Srivats
New Delhi , Oct. 3 IN a reversal of its earlier stance, the Finance Ministry has now said that cenvat credit (modvat) would not be admissible on inputs used in the manufacture of finished goods on which duty has been remitted due to damage or destruction of such final products. The latest decision of the Central Board of Excise and Customs (CBEC) on the matter is in sharp contrast to its August 2002 circular in which it held that cenvat credit of duty paid on the inputs contained in finished products on which duty remission has been granted would be admissible. However, the August 2002 circular also held that before granting remission of duty on any finished products destroyed or damaged in fire, accident etc., it should be ensured that the insurance amount claimed by the assessee does not include the duty element of the inputs used in the manufacture of said goods taken as credit. The CBEC has now withdrawn its August 2002 circular. The Board has also now directed its field formations to recover the dues along with interest on account of the changed position on this issue.
More Stories on : Excise and Customs
Article E-Mail :: Comment :: Syndication :: Printer Friendly Page
|
Stories in this Section |
|
The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription Group Sites: The Hindu | Business Line | Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |
Copyright © 2004, The
Hindu Business Line. Republication or redissemination of the contents of
this screen are expressly prohibited without the written consent of
The Hindu Business Line
|