9911796707
TMI Blog2000 (8) TMI 98X X X X Extracts X X X X X X X X Extracts X X X X ..... l basic exemption upto NIL rate under the Notification No. 175/86 the assessee filed declaration under Rule 57G and opted for Modvat Scheme on 12-8-1991. The assessee also claimed transitional credit of Rs. 4,45,460/- and Rs. 20,499/- under Rule 57B in respect of the stock on inputs held by them as on 12-8-1991. That claim though initially allowed was subsequently rejected by the Asstt. Collector. Collector having allowed the appeal of the assessee, the matter was carried to the Tribunal which even while correctly expending the object and scope of Section 57B, ultimately held that the assessee was not entitled to the transitional credit under S. 57B. The Tribunal took the view that Rule 57B is inapplicable for the purpose of determining the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... credit of duty paid on inputs received by the manufacturer immediately before obtaining the acknowledgment of the declaration, subject to the conditions set out in the Rule". 5. R. 57A does not unfortunately for the assessee give it over-riding effect on Rule 57H as a whole. Had 57B not been a part of Rules, credit could have been taken only for the amount of duty actually paid as provided for in Rule 57A. Rule 57G permits the manufacturer of final product to take credit of the duty on the inputs received by him. Only after he obtains acknowledgment of the declaration required to be made under Rule 57G. Rule 57H deals with the period, anterior to the date of obtaining of the acknowledgment of declaration. For that period, at the discretio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee would have to pay on the final product. The decision to obtain goods from the Small scale manufacturer was at the time it was acquired, not in any way influenced by the existence of Rule 57B. The Rule Making authority has therefore while allowing the credit to be taken for the duty paid on inputs, which was lying in stock at the time of the filing of the declaration has limited the credit to the amount of the duty actually paid. 7. The true purpose of Rule 57B can be said to be served only when the manufacture of the final product is induced to buy the inputs from small scale manufacturers by reason of the opportunity provided by law to avail a higher amount of credit even while actually paying a lesser amount by reason of the in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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