CENVAT credit on original gate passes fails when mandatory notification conditions are not satisfied

CENVAT credit under Notification No. 16/94-C.E. was available only if the subsidiary certificate was issued before 01.04.1994 and the credit was taken by 30.06.1994. Because the disputed original gate passes were issued after 01.04.1994, the mandatory condition attached to the concession was not met. The cited decisions were distinguished on the basis that, in those cases, the gate passes had been issued before the cutoff date. In the absence of any relaxation in the notification, the condition had to be applied as written, and the credit was held inadmissible.

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Issues: Whether credit under Notification No. 16/94-C.E. dated 30.03.1994 could be availed on the strength of original gate passes when one of the prescribed conditions, namely issuance of the subsidiary certificate before 01.04.1994, was not satisfied.

Analysis: The notification required that the subsidiary certificate, being a valid document for the relevant entry, had to be issued before 01.04.1994 and the credit had to be taken by 30.06.1994. The disputed original gate passes were issued after 01.04.1994, so the mandatory condition attached to the concession was not fulfilled. The cited decisions did not assist the respondent because, on the facts considered there, the gate passes had been issued before 01.04.1994. In the absence of any relaxation in the notification, its condition had to be applied as written.

Conclusion: The credit was not admissible and the Revenue's appeal succeeded.

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