TMI Blog2001 (1) TMI 145X X X X Extracts X X X X X X X X Extracts X X X X ..... ce oil used by them as fuel; that the Additional Commissioner, under Adjudication Order No. 8/98, dated 30-4-1998 disallowed the Modvat Credit amounting to Rs.9,30,566.66 paise and imposed a penalty of equivalent amount, holding that the modvat credit in respect of furnace oil was restricted to 10% adv. and that in view of the amendment to Explanation to Rule 57B made on 2-3-1994 which was clarificatory in nature the restriction of 10% adv would be applicable to Credit taken under Rule 57B of the Central Excise Rules also; that the Commissioner (Appeals), under the impugned Order rejected their appeal holding that amendment made by Notification No. 5/98-C.E.(N.T.), dated 2-3-1998 was clarificatory in nature having retrospective effect. He s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as available in respect of HSD Oil under Rule 57 B prior to its amendment by Notification No. 5/98(N.T.), dated 2-3-1998. He also referred to the decision of the Larger Bench in the case of L T Ltd. v. CCE, Mumbai, 2000 (119) E.L.T. 51 (T-LB), 2000 (39) RLT 132 (CEGAT-LB) wherein it was held that amendment made in Rule 57C by Notification No. 4/92-CE(N.T.), dated 1-3-1992 will not have retrospective effect. 3. Countering the arguments, Shri A.K. Jain, learned D.R., submitted that the Explanation was inserted in Rule 57B by Notification No. 5/98 (NT) by way of clarification only and a Notification which is clarificatory in nature will have retrospective effect; that the Larger Bench in L T case, supra, held that the amendment of substa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it of the specified duty paid" as those set out in sub-rule (3) of Rule 57A. This clearly shows that sub-rule (3) of Rule 57A is an aid for interpreting the words "credit of the specified duty paid" under Rule 57 B. Since the Government is authorised to restrict the credit of specified duty paid, therefore, we have to read this in Rule 57B. We find that similar view was taken by this Tribunal in the case of appellants themselves. We do not see any reason to refer the matter to the Larger Bench or to disagree with the findings in that order. We, therefore, follow the ratio of the decision of that order and held that Modvat credit of the specified duty paid shall be restricted to 10% in the instant case." Similar views were expressed by the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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