Utilisation of excise credit depended on clearance period of final products, not on debit of credit before expiry.

Credit of special duty of excise on inputs paid on or before 28-2-1993 could be utilised against duty on final products cleared after 28-2-1993 and before 31-3-1994, because the rule turned on the clearance period of the final products rather than on whether the credit itself was debited before 31-3-1994. The narrower Revenue construction was not supported by the wording of the rule, particularly since the provision was introduced only in August 1993. Credit was therefore admissible for the specified clearances, and the demand and penalty were not sustainable.

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Issues: Whether credit of special duty of excise on inputs could be utilised for payment of duty on final products cleared after 28-2-1993 and before 31-3-1994, even if the actual utilisation of credit took place within that period and not before its expiry.

Analysis: The rule permitted utilisation of credit of special duty of excise paid on inputs on or prior to 28-2-1993 towards payment of duty on final products cleared subsequent to 28-2-1993 but prior to 31-3-1994. The decisive factor under the rule was the period of clearance of the final products, not a separate restriction requiring that the credit itself must also be debited before 31-3-1994. The wording of the rule did not support the Revenue's narrower construction, particularly as the provision was introduced in the statute only in August 1993.

Conclusion: The credit was admissible for payment of duty on final products cleared within the specified period, and the demand and penalty were not sustainable.

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