Modvat credit on Residual Fuel Oil was not capped by the amending notification; full credit remained available.

The amending notification restricting Modvat credit to 10% ad valorem applied only to the specific inputs named in it. Residual Fuel Oil was not included in that restricted list, and its presence under the same tariff chapter could not expand the notification's narrower scope. Consistent with earlier Tribunal rulings on the same issue, credit could not be curtailed merely because the input fell within Chapter 27. The result is that the restriction did not apply to Residual Fuel Oil, and full Modvat credit remained available.

---

---

Issues: Whether the Modvat credit on Residual Fuel Oil used as input was restricted to 10% ad valorem under the amending notification.

Analysis: The restriction on credit introduced by Notification No. 14/97 applied only to the specified inputs named in the notification. Residual Fuel Oil was not covered by that restricted list, and the wider coverage of Chapter 27 of the tariff could not enlarge the narrower scope of the notification. Following the earlier Tribunal decisions on the same issue, the credit could not be curtailed merely because the input fell under the same tariff heading.

Conclusion: The restriction did not apply to Residual Fuel Oil and the assessee was entitled to full Modvat credit.

---