Modvat credit under Rule 57F(4) denied where inputs were received before the specified date and statutory conditions were cumulative.

The fourth proviso to Rule 57F(4) was construed to require that inputs be both received and used in the factory of production on or after 16 March 1995. The word "and" was treated as conjunctive, not interchangeable with "or", so the statutory conditions were cumulative. On that plain reading, Modvat credit could not be extended to inputs received before the specified date, even if other requirements were met. Accordingly, the credit was held not admissible.

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Issues: Whether the fourth proviso to Rule 57F(4) permits utilisation of Modvat credit where the inputs were received before 16 March 1995.

Analysis: The proviso required that the inputs be received and used in the factory of production on or after 16 March 1995. The word "and" was held to be conjunctive and not interchangeable with "or", because it linked receipt of the inputs with their use under the Modvat scheme. On the plain language of the provision, the condition was cumulative and the benefit could not be extended to inputs received before the specified date.

Conclusion: The credit was not admissible to the assessee.

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