Reversal of Modvat Credit ::

Court :
High Court

Brief :
Notification no.15/94-C.E.dated 01.03.94 exempts certain final products of chapter 39 from payment of excise duty only if credit is not taken on inputs used for manufacturing final products.The court held that reversal of Modvat credit amounts to non availment of credit on inputs but reversal should be done to claim the benefit of notification and time of reversal is irrelevant.

Citation :
Union of India Vs. Hello Minerals Water (P) Ltd.

Reversal of Modvat Credit Union of India Vs. Hello Minerals Water (P) Ltd. (2004) 174 E.L.T 422 (All.) Case Fact: Whether the reversal of Modvat credit can be treated as non-availment of credit. Decision: Notification no.15/94-C.E.dated 01.03.94 exempts certain final products of chapter 39 from payment of excise duty only if credit is not taken on inputs used for manufacturing final products.The court held that reversal of Modvat credit amounts to non availment of credit on inputs but reversal should be done to claim the benefit of notification and time of reversal is irrelevant.

140 Views Comment Share Custom Report

Judgement posted by

CA.Saibaburao Nanduri

Chartered Accountant

I am a commerce graduarte of Andhra University. Studied at HINDU COLLEGE, Guntur. Became FCA and started Practice under the name and style of M/s SAIBABU RAO CO I became Chairman of CA Institute, Guntur Branch, during the year 2008-09 My post qualifications are: Information Systems Audit DISA (ICAI) ... Read more

View Judgements

Comments