TMI Blog1997 (8) TMI 150X X X X Extracts X X X X X X X X Extracts X X X X ..... espondent. [Order per : Justice U.L. Bhat, President]. Appellant engaged in manufacture of cement, has a captive power generation plant for the user of which HSD oil is necessary. Appellant filed declaration under Rule 57G of the Central Excise Rules, 1944 seeking to avail Modvat credit on HSD oil. Assistant Commissioner held that HSD oil is not eligible to the benefit of the Modvat Sche ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r words, as Rule 57A stood at the relevant time, Modvat Scheme would be applicable only if the relevant inputs and the relevant finished products are specified by the Government in the relevant Notification. The earliest Notification was 177/86 which did not specify HSD oil as an input eligible for Modvat credit. This position continued until Notification No. 8/95 came to be issued on 16-3-1995. U ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ules by the Notification No. 11/95, dated 16-3-1995. Rule 57G of the Rules, as it stood before the amendments, dealt with allowability of credit in respect of the inputs contained in waste or refuse or by-product. It is also clarified that credit shall not be disallowed, denied on the ground that any exempted material arises during the course of the manufacture of the final product. By Notificatio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... neral pattern of the eligibility under Notification No. 8/95, certain inputs used for the purposes specified in the proviso and subject to the conditions prescribed by the proviso. 5. There is an apparant contradiction between Notification Nos. 8/95 and 11/95. Notification No. 8/95 denies Modvat benefit of HSD oil, but without referring to the purpose for which shall oil is to be used. In other ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... so incorporated in Rule 57D must, insofar as the inputs used for generation of electricity are concerned, must prevail over the non-specification or exclusion in Notification No. 8/95. In this view, we hold that HSD oil referred to in the Declaration submitted by the Appellant, if it satisfies the conditions in 2nd proviso of the Rule 57D, would be eligible for benefit of Modvat credit. The impugn ..... X X X X Extracts X X X X X X X X Extracts X X X X
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