Deemed credit under Rule 57G applied to eligible stock; Rule 57H could not be used to deny the credit.

Deemed credit was made available under the Board's order issued under the proviso to Rule 57G(2) for inputs purchased from outside and lying in stock on or after 1-3-1986, and that effect applied to the relevant period despite the order being dated 7-4-1986. Because credit was available under Rule 57G itself, the absence of a declaration under Rule 57H did not defeat the claim, and Rule 57H could not be relied on to deny credit where Rule 57G governed the case.

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Issues: Whether deemed credit on inputs lying in stock on 1-3-1986 and received up to 11-3-1986 was validly available under Rule 57G, and whether Rule 57H could be invoked in the absence of a declaration under that rule.

Analysis: The Board's order issued under the proviso to Rule 57G(2) of the Central Excise Rules, 1944 made deemed credit available to inputs purchased from outside and lying in stock on or after 1-3-1986. The operative effect of the order therefore extended to the relevant period notwithstanding that it was dated 7-4-1986. Since the credit was available under Rule 57G itself, the grievance that Rule 57H was not complied with did not arise, and Rule 57H could not be used to defeat the credit when the case was governed by Rule 57G.

Conclusion: Deemed credit was held to be available for the relevant stock and inputs, and the objection based on Rule 57H failed.

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