2.    The quantification of the Modvat credit required to be reversed in such cases is to be done in the following manner :-

    A = Modvat Credit to be reversed

   B = Total value of exports under VABAL during the financial year, as declared in AR4 (Sec 4 Value)

   C = Total credit availed in RG-23A during the financial year on all inputs

   D = Total value of goods cleared for home consumption during the financial year arrived at under
         Section 4

FORMULA

                a = -------

3.    In addition to the above amount, an interest @20% on the amount of Modvat credit retained by such exporters for the period between the date of exports and the date of reversal has to be calculated and deposited by them before 31.1.97 under the Central Excise Head along with the amount of Modvat wrongly availed and calculated as above.  Where credit has already been reversed, the exporters shall deposit the interest amount calculated in the manner prescribed above before 31.1.97 under the Central Excise Head.

4.    Similar action should also be taken, mutatis mutandis, for merchant exporters who declared the name of supporting manufacturers while applying for VABAL.

5.    The Calculation Sheet regarding reversal and the amount of interest should also be submitted in the Office of the Jurisdictional Assistant Commissioner who will examine the correctness and intimate the same to the Commissioner in the following format :-

Value of exports            Amount of Modvat                             Amount of modvat credit
                                     credit required to be reversed            actually reversed

                                                                                          A. Amount

                                                                                          B. Particulars of debit entry
                                                                                          C. Date

Amount of Interest        Amount of interest actually                Remarks
required to be               deposited with particulars
deposited                     & date of TR6 Challans

6.    The Commissioner of Central Excise should submit the particulars in the aforesaid format to Chief Commissioners of Central Excise who will prepare a consolidated report indicating clearly the defaulting units/manufacturers who have not reversed the credit and deposited the interest as stated above and forward his report by 15.2.97 to the concerned Commissioners of Customs for taking necessary actions for non-compliance with the conditions of Customs Notification by them under intimation to the Board.

7.    It should be ensured that certificates regarding reversal of Modvat in full or part and payment of interest due shall be issued only by an officer of the rank of Assistant Commissioner of Central Excise.

8.    Earlier instructions regarding reversal related to VABAL Scheme stand modified to the above extent.