Modvat - dutiable and exempted final products - 8% (10%) payable even when there is no sale - Board communicates Supreme Court judgement reported by TIOL
A recent letter of the Board to the field reads as,
The undersigned is directed to enclose copy of the order of the Hon'ble Supreme Court of India in Civil Appeal No. 1373 of 2002 in the matter of CCE, Nagpur Vs. M/s. Ballarpur Industries Ltd. []
The above order may be brought to the notice of the field formation for taking necessary action in cases involving erstwhile rule 57CC of the Central Excise Rules, 1944 and present rule 6 of the CENVAT Credit Rules, 2004.
The Supreme Court held that 8% is payable even when goods are stock transferred to a sister unit. We are happy that Board is following TIOL and acting upon our inputs.
CBEC F.No. 267/95/2007-CX-8 Dated : October 12, 2007