9911796707
TMI Blog1993 (4) TMI 162X X X X Extracts X X X X X X X X Extracts X X X X ..... llowed transitional modvat credit of Rs. 1,35,272.95 in respect of inputs contained in the final product lying in stock on the date of their filing the declaration under Rule 57G of the Central Excise Rules, 1944. 2. In the Appeal, it has been contended reiterating their plea before the authorities below that the omission of clause (ii) of sub-rule 1 of Rule 57H with effect from 5-5-1989 did not affect their case in any way as they were eligible for Modvat Credit in respect of the inputs lying in stock as well as the inputs contained in the final product lying in stock as on the date of their opting for the Modvat scheme. 3. Shri S.C. Mohanty, learned Counsel appearing for the appellants submitted that the stand taken by the lower autho ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... elied upon this reply and also to the reply given in the RAC meeting held in the Madurai Collectorate [Point No. 30 - reported in 1991 (34) ECR 19C]. He concluded his arguments with the plea that the Appeal be allowed. 4. The arguments were opposed by Shri S. Dutt Majumder, learned Senior Departmental Representative. He submitted that in terms of the transitional provisions contained in Rule 57H, credit of duty paid on the inputs received prior to the obtaining of dated acknowledgement of the declaration of such inputs are in stock or are received after filing the said declaration. After 5-5-1989, the transitional benefit by way of credit on inputs received prior to acknowledgement of declaration was admissible only to the above extent. B ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... after the 1st day of March, 1987, and that no credit has been taken by the manufacturer in respect of such inputs under any other rule or, notification.; Provided that such inputs are not used in the manufacture of final product which is exempt from the whole of the duty of excise leviable thereon or is chargeable to nil rate of duty. 57H. Transitional provisions - [After 5-5-1989] (1) Notwithstanding anything contained in Rule 57G, the Assistant Collector of Central Excise may allow credit of the duty paid on inputs received by a manufacturer immediately before obtaining the dated acknowledgement of the declaration made under the said rule if he is satisfied that - (i) such inputs are lying in stock or are received in the factory ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... le 57 as it existed after 5-5-1989 sans the protecting sub-clause (ii) thereunder cannot be given effect to, as if the latter provision existed thereafter also. While deleting the said provision apparently on the ground that it was no longer necessary to lay down the condition of clearance on or after 1-3-1987, the vital coverage of inputs not in stock as such but used in the manufacture of final products cleared after a crucial date had also been deleted. The effect is that after the said amendment deleting sub-clause (ii) transitional credit can be given only in terms of the retained sub-clause (i) which is restricted to inputs lying in stock. It is not possible to agree with the contention raised by the appellants that even after the sai ..... X X X X Extracts X X X X X X X X Extracts X X X X
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