Representations have been received that invoices issued by consignment agents during the period 01.04.1994 to 03.07.1994 are not being considered as valid duty paying document for the purpose of availment of Modvat credit under rule 57G of the Central Excise Rule, 1944 as they were not covered within the Notification No. 15/94-CE(NT) dated 30.03.1994.

2.    In this regard Board's attention has been drawn to Rule 57H as amended vide Notification No. 64/94-CE(NT) dated 07.11.1994. The amended rule inter alia permitted acceptance of 'any invoice' or 'any document' as may be prescribed by the Central Board of Excise & Customs as a valid document under rule 57G of the Central Excise Rules, 1944.

3.    It has been reported that 'consignment agents' are working on behalf of the manufacturers and are mainly responsible for custody and documentation and issue the invoice for sale of goods on their behalf. Sale proceeds are remitted in such cases to manufacturer's account and at the same time goods are duty paid.

4.    The issued has been examined by the Board.

5.    By virtue of he powers conferred by rule 57H of the Central Excise Rules, 1944. The Central Board of Excise and Customs  hereby specifies the invoices issued by the consignment agents as a valid document for the purpose of allowing Modvat credit subject to the following conditions:-
 

(i)    Such invoices should contain the details as referred to in the Notification No. 15/1594-CE(NT) dated 30.03.94 and Notification No. 21/94-CE(NT) dated 12.05.1994.

(ii)    The persons issuing such invoices/ documents have got themselves registered under rule 174 read with rule 57G of the Central Excise Rules, 1944 consequent to the issue of Notification No. 32/94-CE (NT) dated 04.07.1994.

(iii)    While allowing such credit the Assistant Commissioner of Central Excise shall verify or cross- check the genuineness of the invoices issued and duty paid character of the inputs.

Sd/-
(Mallika Arya)
Under Secretary to the Government of India

---