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TMI Blog2000 (3) TMI 124X X X X Extracts X X X X X X X X Extracts X X X X ..... een used in it or not. Once this sequence is followed the meaning/restriction become clear. Thus, the proviso seeks to overcome the specific barring clause of Rule 57F(12) which stipulates utilisation of credit towards payment of duty on final product in the manufacture of such inputs which are intended to be used in accordance with the declaration". Ld. Commissioner further observed - "The proviso to rule 57F(12) is thus in no way ambiguous or unclear. Notwithstanding the 'non obstante' clause it has a limited scope which is to specifically allow utilisation of credit of 'specified duty' in respect of any input towards payment of duty of excise on any other final product, whether the input is used in the manufacture of such final product ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ding anything contained in Rule 57A and the notifications issued thereunder, the credit of specified duty allowed in respect of any inputs may be utilised towards payment of duty of excise on any other final product, whether or not such inputs have actually been used in the manufacture of such other final product if the said inputs have been received and used in the factory of production on or after the first day of March '97". The Commissioner interpretated the above notification and Rules as indicated in the preceding paragraphs and hence the appeals before us. 3. Arguing the case for the appellant Shri V. Sridharan, ld. Counsel submits that Rule 57A of the Central Excise Rules, '44 provides for taking credit of specified duty paid on s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... efore, what succeeds a 'non obstante' clause is an enacting clause. He submits that non obstante part of this proviso provides that we can ignore the provisions of Rule 57A and the notifications issued thereunder in regard to credit of specific duty provided that the inputs are utilised towards payment of duty of excise duty on any other final product whether or not such inputs have actually been used in the manufacture of such other final product, if the said inputs have been received and used in the factory of production on or after first day of March '97. Ld. Counsel explains that the inputs were received in their factory after first day of March 1997 and were used in their factory; that the input tyre cord fabric was used in the manufac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... R appearing for the respondent Commissioner submits that Rule 57A provides for the final product to be specified, the input to be specified and the duty to be specified. He submits that in the instant case, there is no dispute about the final product and the input are specified. The only dispute is about the duty specified, he submits that in the instant case, Modvat credit was taken on tyre cord fabric, he submits that on tyre cord fabrics, Additional Excise Duty is leviable and credit thereof under the Modvat scheme is permissible. He submits that Notification No. 5/94 provides that credit of Additional Excise Duty can be availed only for payment of additional Excise Duty and not for payment of Basic Excise Duty. He submits that the ld. C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e manufacture of such other final product, if the said inputs have been received and used in the factory of production on or after the first day of March, 1997. Examining the facts of the case before us in the light of the requirement of the enacting clause, we find that the credit in the instant case is the credit of Additional Excise Duty paid on tyre cord fabric. The credit so taken of the Additional Excise Duty is utilized towards payment of Basic Excise Duty on tubes. Tyre Cord fabric is not used as an input in the manufacture of tubes. Tyre Cord fabric has been received and used in the factory of production on or after first day of March '97. Thus, we find that all the requirements of enacting clause of Rule 57F(12) are fully complied ..... X X X X Extracts X X X X X X X X Extracts X X X X
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