Whether the value of the inputs cleared as such under Rule 57F(1) (ii) on payment of duty is to be included in the aggregate value of clearances for purposes of Notification No. 175/86 - Clarification regarding - Central Excise - 57/88

Whether the value of the inputs cleared as such under Rule 57F(1) (ii) on payment of duty is to be included in the aggregate value of clearances for purposes of Notification No. 175/86 - Clarification regarding Circular No. 57/88 Dated 27-10-1988 [From F. No. 263/30/88-CX.8] Government of India Ministry of Finance (Department of Revenue) Central Board of Excise Customs, New Delhi Subject : Whether the value of the inputs cleared as such under Rule 57F(1) (ii) on payment of duty is to be included in the aggregate value of clearances for purposes of Notification No. 175/86 - Clarification regarding. I am directed to say that the doubts have been raised as to whether the value of inputs on which Modvat credit has been taken and which are cleared as such under Rule 57F(1) (ii) on payment of duty, would be includible in the aggregate value of clearances for purposes of Notification No. 175/86 or not. The matter has been examined by the Board. Since inputs brought by the assessee for taking Modvat credit have been purchased and not actually manufactured by the assessee, the same when cleared as such on payment of duty cannot be regarded as goods manufactured by the assessee. It has therefore been decided that the value of such inputs cleared as such under Rule 57F(1) (ii) should not be included in the aggregate value of clearances under the Small Scale Exemption Notification. The above instructions may be brought to the notice of the field formations. Trade interests may also be suitably informed. Receipt of this letter may please be acknowledged.