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TMI Blog1996 (5) TMI 163X X X X Extracts X X X X X X X X Extracts X X X X ..... 17-3-1988 filed application, vide Rule 57H of the Central Excise Rules, for availment of Modvat credit for Rs. 16,19,444.61 basic excise duty and Rs. 1490.14 special excise duty for the goods used as inputs for manufacture of their final product and lying in stock, on the date of their filing declaration under Rule 57G of the Rules, which also they filed on 17-3-1988. On due verification of records as also the declaration, jurisdictional Assistant Collector granted permission for the same vide his order dated 10-4-1989, restricting the availment of credit to Rs. 14,44,910.73 (basic) and Rs. 1,331.74 (special). Subsequently however, the said authority vide letter dated 26-6-1989 directed the appellants to reverse the credit to the extent of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f credit only to the extent of duty paid on the inputs, and that could cover only that amount which has actually been paid as duty and would not cover the notional higher rate, at which the actual payment is not made. In his submission, the statutory provisions in relation to fiscal provisions ought to be strictly construed and the wordings of Rule 57H duly indicate that the intention is to permit availment of credit to the extent of amount actually paid as duty and not the other benefits as contemplated under Rule 57B of the Rules. He has also pleaded that the Additional Collector was acting within the statutory provisions in raising the demand, alleging that the part of the credit sanction was not admissible, and was erroneously sanctione ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Rules provides that credit of duty of excise and additional duty of excise paid on the inputs used in or in relation to the final product (subject to the other qualifying clauses inserted in the said Rule) be taken and utilised in payment of duty on the final product. The duty paid on input, as envisaged in Rule 57A would normally mean the duty actually paid on the inputs. There however existed certain notifications, where some concessions were given to Small Scale Industrial Units by virtue of which, they were paying the duty at the rate lower than the normal rate of duty, and with a view that they may not be prejudiciously affected and purchases of items manufactured by them and used as inputs by other industrial units may not get ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e inputs already acquired prior to filing of such a declaration, and when notional higher credit is available prospectively, with Rule 57H being merely on extension thereof, covering inputs already lying in stock on the date of declaration, in absence of specific provision excluding applicability of Rule 57B, the wordings in Rule 57H and the words duty paid on inputs has to be taken as also covering notional higher credit, wherever the inputs are falling within the category of cases covered under Rule 57B. The basic intention in framing Rule 57H being to confer the benefit of taking credit also on the inputs lying in stock on the date of filing of declaration, there is no rationale in interpreting the said Rule on covering only the actual ..... X X X X Extracts X X X X X X X X Extracts X X X X
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