Subject :    Issue of certificates by Central Excise Officer regarding non-availment of MODVAT Credit - Clarification regarding.

        I am  directed to refer to Board's Circular No. 116/27/95-CX issued in F.No. 209/6/95-CX. 6 dated 6th April, 1995 on the above subject whereby it was clarified that the requisite certificates on AR -4/ AR-4A may be issued by the Range Superintendent in those cases where the manufacturer may have obtained the MODVAT credits as and when the inputs were received but the same was reversed before the final products have been cleared out of the factory for export under AR-4/ AR-4A. It was clarified that no such certificate should be issued for the time-being, in those cases where a manufacturer has obtained the MODVAT credit before the export but reversed the same subsequent to the clearance of the goods from the factory or export.

2.    Some exporters have expressed difficulties that although they are reversing the MODVAT Credit at the end of every month (before filing of RT -12), the Range Superintendents refuse to give the requisite certificate on the AR4/ AR 4A in view of the aforementioned Board's  instruction dated 6.4.95. The Customs Authorities have also refused to clear the export consignment against advance licences on the same ground.

3.    The matter has been examined by the Board. To obviate the difficulty being faced by the exporters, it is further clarified that in case the MODVAT credit is reversed at the end of every month (before filing RT-12) for all the exports made during that month, the requisite certificate regarding non-availment of MODVAT credit may be issued by the Range Superintendent on the body of the exporter's copy of AR4/ AR4A or on a copy thereof attested by the Range Officer after necessary verification of range records including RG 23A records, invoices submitted for defacement and the RT-12 returns as well as the Range's copy of the relevant AR4/ AR 4A.