TMI Blog2006 (4) TMI 129X X X X Extracts X X X X X X X X Extracts X X X X ..... sed 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. - 7334-7336 of 2000 - - - Dated:- 19-4-2006 - Ruma Pal and Dalveer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ect to the provisions of this section and the conditions and restrictions, if any, specified in the said notification. The Central Government may also specify in the said notification the goods or classes of goods in respect of which the credit of specified duty may be restricted." 3.Thus Rule 57A(1) provides that the Central Government may by Notification specify the particular excisable goods in respect of which the provisions of the Rule would apply. The said sub-rule also allows the Central Government to specify by way of Notification the duties of excise, additional duty or duty under Customs Tariff Act for which credit could be taken in terms of the said Rule. These duties are known as the specified duties. Rule 57A(2) allows the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h credit could be taken. These duties referred to as "specified duty" include : "(i) the duty of excise under the (Central Excise Act, 1944) (1 of 1944); (ii) the additional duty of excise under Section 3 of the Additional Duties Excise (Textiles and Textile Articles) Act, 1978 (40 of 1978);" The Notification contains a proviso which reads as follows : "Provided further that, the credit of specified duty paid in respect of inputs, namely, naphtha, furnace oil, low sulphur heavy stock, light diesel oil, bitumen and paraffin wax falling under Chapter 27 of the Schedule to the Central Excise Tariff Act, 1985 (5 of 1986) and used in the manufacture of final products in any place in India shall be restricted, - (i) in the case of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 10% ad valorem. 9.We are of the view that the Tribunal erred in holding that the ad valorem inputs credit under Rule 57B was subjected to the limit of 10% ad valorem as specified in the Notification dated 1st March, 1994. Rule 57B, as we have noted, selects certain goods for special treatment other than the treatment they would have been subjected to under Rule 57A. Were the goods not subjected to the special/different treatment, there was no reason to enact a separate rule. The non-obstante clause in Rule 57B would cease to have any meaning and would be rendered otiose if the goods covered under Rule 57B are treated at par with the goods under Rule 57A. It is true that Rule 57B refers to specified duty. In the Notification dated 1st Ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s as follows : "Explanation. - for the purposes of this sub rule, it is hereby clarified that the term 'inputs' refers only to such inputs as may be specified in a notification issued under Rule 57A". This does not refer to the limits but only refers to the specified inputs in respect of which credit could be taken. The Explanation has no bearing on the issue to be decided. There is no dispute that the inputs in this case are inputs specified under Rule 57A in respect of which Modvat credit was permissible. 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 furnance oil for the amount actually paid on account of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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