Modvat - Grant of refund on the inputs on which Modvat credit has been taken and subsequent variation of Modvat credit - Central Excise - 18/89

Modvat - Grant of refund on the inputs on which Modvat credit has been taken and subsequent variation of Modvat credit Circular No. 18/89 Dated 6-6-1989 [From F. No. 264/6/89-CX.8] Government of India Ministry of Finance (Department of Revenue) Central Board of Excise Customs, New Delhi . Subject : Minutes of the meeting of Collectors of Central Excise, South Zone held at Hyderabad on 23rd 24th January 1989 - Point No. 5 regarding variation of Modvat credit consequent upon of grant of refunds to manufacturers of inputs I am directed to refer to the minutes on Point No. 4 of the South Zone Conference held at Hyderabad on 23rd/24th January, 1989 regarding difficulties in grant of refund on inputs on which Modvat credit has been taken and subsequent variation of Modvat credit. The Conference observed various difficulties in implementation of Board's instruction F. No. 267/46/88-CX.8, dated 5-4-1988 and suggested that (i) The refunds should be barred in respect of goods which are notified under Modvat scheme or (ii) Onus of proof that no Modvat credit has been taken on inputs on which refunds are claimed should lie on assessee. The matter has been examined by the Board. Both the aforesaid suggestions have not been found workable. It has therefore been decided by the Board to maintain status quo. The above instructions may be brought to the notice of the field formations. Receipt of this letter may please be acknowledged.