Modvat credit of duty paid on Capital Goods

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..... of duty paid on Capital Goods The Board is in receipt of the references from the field formations to amend Rule 174 and the rules under Section AAAA of Chapter V of the Central Excise Rules so that the Modvat credit should be allowed on receipt of the capital goods during setting up a factory for manufacture of the final products. It has been stated that in these cases difficulty is experience .....

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..... ceived at the time of establishment of such a factory can be availed only after the factory commences production and is registered. The credit so availed can be allowed to be utilised only for payment of duty on goods manufactured and cleared by such a factory. 3. Field formations and Trade interests may be suitably informed. 4. Receipt of these instructions may kindly be acknowledged. Circ .....

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