Clarificatory amendment to notification expands payment mode and supports deemed credit under the earlier regime

The substituted explanation in the earlier notification, which expressly included payment by bank draft, was treated as clarificatory rather than as a new substantive restriction. Because the supplier's receipt of consideration was not disputed, the later amendment was applied to support deemed credit under the earlier notification. The denial of credit was therefore set aside, and the assessee was allowed the benefit of deemed credit.

---

---

Issues: Whether the amended notification permitting payment by bank draft or banker's cheque was clarificatory and applicable to deny or allow deemed credit under the earlier notification.

Analysis: The explanation in the earlier notification was substituted by the later notification, and the substituted language expressly included payment by bank draft. Since the supplier's receipt of consideration was not in dispute, the amendment was treated as clarificatory in nature and not as introducing a new substantive restriction.

Conclusion: The amended notification was held to be clarificatory, the denial of credit was set aside, and the benefit of deemed credit was allowed to the assessee.

---