9911796707
TMI Blog1999 (1) TMI 34X X X X Extracts X X X X X X X X Extracts X X X X ..... (4A) : Notwithstanding anything contained in sub-rule (4), or sub-rule (1) of rule 57A and the notifications issued thereunder any credit of specified duty lying unutilised on the 16th day of March, 1995 with a manufacturer of tractors, falling under heading No. 87.01 or motor vehicles falling under heading No. 87.02 and 87.04 or chassis of such tractors or such motor vehicles under heading No. 87.06 of the Schedule to the Central Excise Tariff Act, 1985 (5 of 1986) shall lapse and shall not be allowed to be utilised for payment of duty on any excisable goods, whether cleared for home consumption or for export : Provided that nothing contained in this sub-rule shall apply to credit of duty, if any, in respect of inputs lying in stock or co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... available earlier is no longer available and, therefore, it is not open to contend that the scheme affects any vested right; and, that under the scheme it is only a mode of adjustment of taxes which were provided and there is no vested right accrued to the assessees. Thus a rule which merely lapsed does not give rise to the contention advanced on behalf of the petitioners and the withdrawal of concessions at any rate is not retrospective in effect to apply either the principle of promissory estoppel and/or the doctrine of legitimate expectation or even the rule that a vested right cannot be taken away. It is further made clear that a credit facility which is made available could not be allowed to perpetuate and the entire rule is in the fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ained in finished products lying in stock on 16-3-1995 was allowed. Prior to 1995-96 Budget, central excise/additional duty of customs paid on inputs was allowed as credit for payment of excise duty on the final products, in the manufacture of which such inputs were used. The condition required for the same was that the credit of duty paid on inputs could have been used for discharge of duty/liability only in respect of those final products in the manufacture of which such inputs were used. Thus it was claimed that there was a nexus between the inputs and the final products. In 1995-96 Budget Modvat scheme was liberalised/simplified and the credit earned on any input was allowed to be utilised for payment of duty on any final product manufa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re of the final products and the final products which have already been cleared from the factory alone is sought to be lapsed, that is, the amount that is sought to be lapsed relates to the inputs already used in the manufacture of the final products but the final products have already been cleared from the factory before 16-3-1995. Thus the right to the credit has become absolute at any rate when the input is used in the manufacture of the final product. The basic postulate, that the scheme is merely being altered and, therefore, does not have any retrospective or retro-active effect, submitted on behalf of the State, does not appeal to us. As pointed out by us that when on the strength of the rules available certain acts have been done by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rked out or until those goods existed. Therefore, it becomes clear that Section 37 of the Act does not enable the authorities concerned to make a rule which is impugned herein and, therefore, we may have no hesitation to hold that the rule cannot be applied to the goods manufactured prior to 16-3-1995 on which duty had been paid and credit facility thereto has been availed of for the purpose of manufacture of further goods. 7. There are several decisions referred to by the learned Counsel on either side but we do not think that those decisions have any relevance to the point under discussion. 8. We allow the petitions filed by the assessees and declare that the said rule cannot be applied except in the manner indicated by us above. No ord ..... X X X X Extracts X X X X X X X X Extracts X X X X
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