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TMI Blog1991 (8) TMI 219X X X X Extracts X X X X X X X X Extracts X X X X ..... ubsequently quantified to Rs. 16,304.67. 2. Today only the stay petition was listed for hearing. However with the consent of both the sides, the appeal itself was taken up for hearing. 3. The appellants are engaged in manufacture of coated fabrics and they were availing of the proforma credit on duty-paid plastic sheets and films used in laminated fabrics, under Rule 56A available vide Notification No. 68/84-C.E., dated 1-3-1984. The said notification was however rescinded on 1-3-1987 and the mod vat procedure was made applicable to the said inputs and the final product. Pleading that they were not aware of the said change, the appellants continued to avail of the benefit of Notification 68/84 up to 27-9-1987 and thereafter filed a decl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and that vide Rule 57H Clause (ii), they would be eligible to get the modvat credit for the inputs, which were lying in their factory on 1-3-1987 or received thereafter. Even though they had not obtained the dated acknowledgement of the declaration made, he submitted that the Collector (Appeals) has erred in properly appreciating and interpreting Rule 57A and has erred in confirming the demand even for the period which was within six months from the date of issue of the show cause notice. 5. Shri Singh, the ld. JDR, however, supported the order of the Collector (Appeals) and submitted that the interpretation of Rule 57H given by him was correct and therefore the order does not call for any interference. 6. Considering the submissions m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d in the Asstt. Collector have be judiciously exercised and if the criteria laid down in the said Rule is duly complied with, the discretion has to be exercised in favour of the assessee. The word immediate used in the said rule and on which the Collector (Appeals) has laid much stress, has to be read not in isolation but in conjunction with the other provisions in the said rule. The interpretation given by the Collector (Appeals), therefore, does not appear to be correct. There is no dispute over the issue that the goods manufactured out of the inputs, were cleared from the factory on or after the first day of March 1987. In that case, therefore, clause (ii) Rule 57H would stand attracted and the benefit of modvat credit, by virtue of th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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