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TMI Blog2014 (8) TMI 405X X X X Extracts X X X X X X X X Extracts X X X X ..... y availed Cenvat credit on various inputs including Furnace Oil as fuel. By Notification No.5/94-CE (NT), dated 01.03.1994 issued under Rule 57A of the erstwhile Central Excise Rules, 1944 in supersession of the Notification No.177/86-CE, dated 01.03.1986 MODVAT credit was extended to fuels amongst others. The said notification was amended by Notification No.14/97-CE(NT), dated 03.05.1997 and credit on inputs, namely, Furnace Oil and other items were restricted to the amount of excise duty calculated at the rate of 10% ad valorem instead of 15% ad valorem as paid by them. There was a retrospective amendment of Notification No.14/97-CE (NT), dated 03.05.1997 by Section 87 of the Finance Act, 1997. As per Section 87 of the Finance Act, 1997, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hile Rule, 1944. He further submits that Section 87 of the Finance Act, 1997 is in respect of a notification dated 03.05.1997 issued under Rule 57A of the erstwhile Rules. Further, as per sub-section (2) of Section 87 of the Finance Act, 1997 the present proceedings cannot be sustained. He further submits that at any event, the Revenue's appeal cannot be accepted as it is covered by the decision of the Hon'ble Supreme Court in the assessee's favour in the case of Jindal Poly Films Ltd. Vs Commissioner of Central Excise, Meerut-II reported in 2006 (198) E.L.T. 3 (S.C.) - [Paragraphs 9 & 10]. He further submits that before issuance of the show-cause notice, the appellant moved before the Hon'ble High Court challenging the vires of Section 87 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 6-SC-CX, where it has been held that Finance Act, 2000 disallowed CENVAT credit on HSD and any credit taken shall be reversed within 30 days of enactment of Finance Act, 2000 and if not, interest is leviable. 5. After hearing both the sides and on perusal of the records, I find there is no dispute that Notification No.5/94-CE(NT), dated 01.03.1994 was issued in exercise of power conferred under Rule 57A of the Central Excise Rules, 1944. The assessee availed MODVAT credit at the rate of 15% ad valorem paid on the specified inputs, furnace oil, among others. Subsequently, by Notification No.6/97-CE(NT), dated 01.03.1997, new provision of Rule 57A and 57B were substituted. It is seen that 'Fuel' is specifically mentioned in Rule 57B. S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ect of Furnace Oil for the amount actually paid on account of specified duty during the period Mar.'97 to Feb.'99. In the present case, the Commissioner (Appeals) following the decision of the Hon'ble Supreme Court in the case of M/s. Jindal Poly Films Ltd. rightly allowed the credit for the period 01.03.1997 to 03.05.1997 and upheld the demand for the period 23.07.1996 to 28.02.1997. The relevant portions of the decision of the Hon'ble Supreme Court is reproduced below:- 12.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 furnace oil for the amount ..... X X X X Extracts X X X X X X X X Extracts X X X X
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