Endorsement of certificates issued by M.M.T.C./S.T.C. to buyers etc. for purposes of duty paying documents - Instructions regarding - Central Excise - 267/17/88-CX.8

Endorsement of certificates issued by M.M.T.C./S.T.C. to buyers etc. for purposes of duty paying documents - Instructions regarding F.No. 267/17/88-CX.8 Dated 19-2-1988 Government of India Ministry of Finance (Department of Revenue) Central Board of Excise Customs, New Delhi Subject : Endorsement of certificates issued by M.M.T.C./S.T.C. to buyers etc. for purposes of duty paying documents - Instructions regarding. I am directed to invite your attention to Board's instructions issued vide F.No. 14HH/8/69-CX-8, dated 22-6-1970, F.No. 261/268/1/80-CX.8, dated 2-3-1981, whereby the facility to avail proforma credit on the basis of the certificate issued by public sector undertakings/canalising agencies like M.M.T.C./S.T.C., was made available. This facility was extended to Modvat also vide Board's F.No. B.22/B/86-TRU, dated 10-4-1986 as a result of which such certificates were treated as duty paying documents. 2. Instances have been reported to the Board where the holders of such certificates are endorsing these certificates (on transfer/sale of goods) to the transferees/buyers, who in turn, have taken credit of duty on the basis of these endorsed certificates by treating them as duty paying documents. 3. The matter has been examined by the Board. It has been decided that Modvat can not be allowed on endorsed certificates. The certificate itself is a duty paying document and it can not be further endorsed to anybody to avail Modvat. Therefore, this practice, if prevailing in any Collectorates may be stopped forthwith. However, if such credit have already been taken in the past, the same should be verified for authenticity of such certificates and demands raised where any discrepancies noticed. 4. Field formations may be informed suitably. 5. Receipt of this letter may please be acknowledged.