1990 (8) TMI 274

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....covered their mistake that they had taken a lower credit after the receipt of the goods in the factory. The learned Collector (Appeals) has held as under :- "In the absence of restriction in the Central Excise Rules, the appellants are eligible to take credit as per specific provisions of Rule 57-B read with Notification No. 175/86. The credit of duty taken on receipt of the inputs, if not correct, the correct amount can be taken or balance amount taken subsequently, especially in the same month when the inputs were received by the assessee. I do not find any provision in Central Excise Rules, which forbids such taking of credit in RG. 23A account by the manufacturer. As such, the order of the Assistant Collector is set aside and the appea....

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.... Department reiterated the grounds of appeal. 4. We observe that while there is a provision under Rule 57-1 under which in case an assessee has taken wrong MODVAT credit the authorities can ask him to reverse the credit to the extent the wrong credit has been availed of or they can make recovery in respect of the same, there is no specific provision providing for taking of the additional credit where a short credit has been taken by the assessee. The learned appellant Collector in the absence of this provision has urged that whatever credit is taken by the assessee cannot be varied with advantage on a later date in case a mistake is found. This, in our view, is not the correct approach in the case where by a benevolent legislation the asse....