Saving clause under Rule 56A(8) preserved proforma credit despite later deletion from notification coverage.

Rule 56A(8) preserved proforma credit where the credit was already allowable immediately before the commencement of the CETA, 1985, even though the relevant goods were later deleted from Notification No. 178/86-C.E. coverage. The discussion notes that manufacturers had continued availing credit on copper pipes and tubes, electric motors, aluminium sheets and coils, and the saving clause introduced by Notification No. 91/86-C.E. was treated as protecting that existing entitlement. On this reading, deletion from the notification did not extinguish the saved credit and the continued availment was upheld.

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Issues: Whether proforma credit on specified inputs could continue to be availed after their deletion from the coverage of Notification No. 178/86-C.E., by virtue of the saving provision in Rule 56A(8).

Analysis: The respondents had been availing proforma credit under Rule 56A on copper pipes and tubes, electric motors, aluminium sheets and coils, even after deletion of those items from the notification coverage. The controlling question was whether Rule 56A(8), introduced by Notification No. 91/86-C.E., preserved the credit where it had been allowable immediately before the commencement of the CETA, 1985. The lower appellate authority found that the amendment protected manufacturers who were already enjoying benefit under the earlier notification and allowed them to continue under Rule 56A. On examination of the record and the relevant rules, there was no reason to interfere with that view.

Conclusion: The credit was rightly extended under Rule 56A(8), and the appeal failed.

Ratio Decidendi: Where credit was allowable immediately before the commencement of the CETA, 1985, the saving clause in Rule 56A(8) continued that entitlement notwithstanding later deletion of the goods from the notification coverage.

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