Calcined petroleum coke/coke dust eligibilities of Modvat credit - Regarding - Central Excise - 16/92-CX.8

Calcined petroleum coke/coke dust eligibilities of Modvat credit - Regarding Circular No. 16/92-CX.8 Dated 10-7-1992 [From F. No. 267/28/92-CX.8] Government of India Ministry of Finance (Department of Revenue) Central Board of Excise Customs, New Delhi Subject : Calcined petroleum coke/coke dust eligibilities of Modvat credit - Regarding. I am directed to refer to Board's Circular No. 4/89-CX.8, dated 21-3-1989 , wherein it was clarified that 'coke dust', among other things used in the manufacture of Iron and Steel products would be eligible for Modvat credit, and to say that representations have been received from the trade on denial of Modvat credit on 'Petroleum Coke', classifiable under Chapter 27 on the ground that it is not a specified item under Notification No. 177/86, dated 1-3-1986 as amended, whereas 'coke dust', a similar product also falling under Chapter 27 is being allowed Modvat credit in certain collectorates in the light of the above cited circular. 2. The issue was examined by the Board in detail. It is observed that Modvat credit is allowable only on the goods which are specified by the Central Government in the official notification. Since Chapter 27 is not a specified chapter under Notification 177/86, Modvat credit cannot be allowed on 'petroleum coke'. On the same analogy, though it was clarified that 'coke dust' would be eligible for Modvat by virtue of its use in the Iron and Steel Industries, the fact that it falls under Chapter 27 would render the items automatically ineligible for Modvat. However, wherever Modvat credit has already been allowed on 'coke dust', immediate action may be taken to recover the revenue by treating the issue as 'mistake of law' and compliance reported to the Board. 3. Instruction contained in Circular No. 4/89-CX.8, dated 21-3-1989 may be considered to have been modified to that extent. 4. Field formations may please be informed accordingly. 5. Receipt of this letter may please be acknowledged.