Modvat credit on subsidiary certificates was allowed for pre-April 1994 duty documents taken within the notified time limit.

Modvat credit was treated as admissible where subsidiary certificates issued by the Range Superintendent were used for duty-paying documents issued before 1 April 1994 and the credit was taken within the period allowed by Notification No. 16/94-C.E. (N.T.). Credit of Rs. 42,335 was rejected as not admissible, but the remaining credit of Rs. 1,05,021 was accepted because the notification covered such documents and the Revenue's cited precedents were found distinguishable on facts.

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Issues: Whether Modvat credit taken on the basis of subsidiary certificates issued after the relevant notification, but in respect of duty-paying documents issued before 1 April 1994 and utilised within the permitted period, was admissible.

Analysis: The credit of Rs. 42,335 was accepted as not admissible. For the remaining credit of Rs. 1,05,021, the documents comprised subsidiary certificates issued by the Range Superintendent. Notification No. 16/94-C.E. (N.T.) permitted credit on such basis where the duty-paying documents were issued before 1 April 1994 and the credit was taken on or before 30 June 1994. The cited precedents relied upon by the Revenue were found distinguishable on facts and were not treated as governing the present situation.

Conclusion: The credit of Rs. 1,05,021 was held admissible and the balance was rejected.

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