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2006 (4) TMI 129 - SC - Central ExciseWhether duty paid on the furnace oil used as input could be availed of as credit under the Modvat scheme as envisaged under Rule 57B of the Central Excise Rules, 1944? - Held that:- The relevant period in these appeals is March, 97 to Feb, 99. Therefore, in terms of Rule 57B as amended the appellant would be entitled to take credit in respect of the furnance oil for the amount actually paid on account of specified duty upto 2nd June, 1998 and thereafter at 95% of the duty paid. The appeals are accordingly allowed with no order as to costs. Whether the credit on the inputs used under Rule 57A Central Excise Rules, 1944 was restricted to 10% ad valorem - Held that:- The Notification dated 1st March, 1994 as amended on 3rd May, 1997 clearly provided that as far as Rule 57A is concerned, the manufacturer was entitled to input credit only up to the limit of 10% ad valorem. In that view of the matter this appeal must be dismissed. However, learned counsel appearing on behalf of the appellant has sought to urge that notification dated 3-5-97 was ultra vires. This is not the subject matter of the present appeal. It is open to the appellant to approach an appropriate forum to raise this issue if it is otherwise so entitled in accordance with law.
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