Rule 56A credit remained available despite the exemption notification, preserving the assessee's alternate input-credit option.

Notification No. 70/94-C.E. permitted an assessee either to clear goods at the notified concessional rate or to continue under the Rule 56A credit procedure. The notification did not exclude the statutory option under Rule 56A, so the alternate credit mechanism remained available during the relevant period. The benefit was confined to inputs received by the assessee, and the earlier remand was consistent with that position. On that basis, the challenge to the Commissioner (Appeals) failed and the assessee remained entitled to Rule 56A benefit.

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Issues: Whether the assessee was entitled to claim the benefit of Rule 56A in respect of inputs and stock on hand after the exemption notification was repealed and during the period covered by Notification No. 70/94-C.E.

Analysis: The text of Notification No. 70/94-C.E. showed that the assessee could either clear the goods at the notified concessional rate or remain under the Rule 56A procedure. The availability of the notification did not exclude the statutory option under Rule 56A. The benefit claimed related only to inputs received by the assessee, and the earlier remand was consistent with the principle that the alternate credit mechanism remained open during the relevant period.

Conclusion: The assessee was entitled to the benefit of Rule 56A, and the challenge to the Commissioner (Appeals) failed.

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