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TMI Blog1992 (6) TMI 139X X X X Extracts X X X X X X X X Extracts X X X X ..... 44 and requiring the appellants to repay the same. 2. The appellants, manufacturers of Paper and Paper Board falling under Ch. 48 of the Central Excise Tariffs, 1985 availed of Modvat credit of Rs. 31,073.68, between the period 1-8-1988 to 31-1-1989 on the Gum Tapes received as input. It was however felt that by virtue of Notf. No. 177/86 dated 1-3-1986 the appellants were eligible to a credit only to the extent of Rs. 12,50.64 at the rate of Rs. 800 per MT and as such they had availed of the credit in excess to the extent of Rs. 18,623.01 and hence a show cause notice was issued, in reply to which the appellants came forward with the plea that they were receiving Gum Tapes from M/s. Chirag Enterprise, an SSI unit, which paid the duty on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Rule should prevail despite anything to the contrary in the provisions mentioned in such non-obstante clause, and as such Notf. 177/86 does not stand attracted, and the appellants are entitled to avail of the benefit, in purchase from SSI unit, of the credit amount, as admissible on account of such purchase, in support of his plea, the ld. Sr. Advocate relied upon the decision of Andhra Pradesh High Court in K. Parasuramaiah v. Pokuri Laxmanna - AIR 1965 Andhra Pradesh 220. 4. Mrs. Lipika Majumdar Roy Chowdhary, the ld. SDR has, however, pleaded that in the Modvat Scheme, Rule 57A of the Central Excise Rules, 1944, is the main source from which the right to claim Modvat credit arises. In her submission, with availability of credit for th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uct and the input in relation to which MODVAT credit could be availed of and also circumscribes the periphery of the word input , secondly it provides for availment of credit for the duty or additional duty as specified under the Tariff Act, and thirdly it authorises the government to restrict the availment of duty to an extent of some specified amount. 7. A plain reading of Rule 57B, clearly indicates that there does exist non-obstante clause, which has to be read as intended to give overriding effect to some provisions of Rule 57A. Because Rule 57B is also a part of MODVAT Scheme, and is governed by the basic structure of the scheme, the non-obstante clause cannot be read as covering all the provisions of Rule 57A. A careful reading of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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