Rectification limited to apparent errors; exemption under Notification No. 46/94 could not be denied by adding unstated conditions.

Rectification is confined to errors apparent on the face of the record and cannot be used to reopen issues already decided or to import conditions not found in the notification itself. Exemption under Notification No. 46/94 could not be denied merely because Modvat credit had been taken on inputs, as the notification contained no such condition and the cited Supreme Court ruling was distinguishable. The alleged non-reversal of credit for clandestine removals also disclosed no apparent error, since the record did not establish a rectifiable mistake and the duty paid through PLA exceeded the credit in question. The claim relating to parts of irrigation systems likewise could not be reopened in rectification proceedings.

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Issues: (i) Whether the exemption under Notification No. 46/94 could be denied on the ground that Modvat credit had been taken on inputs and whether the principle in Amrit Paper required rectification of the earlier order; (ii) whether the alleged non-reversal of credit relatable to clandestine removals showed any mistake apparent from the record; (iii) whether the claim of exemption for parts of irrigation systems disclosed any rectifiable error.

Issue (i): Whether the exemption under Notification No. 46/94 could be denied on the ground that Modvat credit had been taken on inputs and whether the principle in Amrit Paper required rectification of the earlier order.

Analysis: The notification itself contained no condition making exemption dependent on non-availment of input credit. The cited Supreme Court decision was distinguished as it dealt with Rule 57C in the context of exempt final products, whereas the present case concerned the effect of payment of duty on the final product and the earlier finding that such payment amounted in substance to reversal of credit.

Conclusion: No mistake apparent from the record was shown on this ground, and the earlier view was maintained.

Issue (ii): Whether the alleged non-reversal of credit relatable to clandestine removals showed any mistake apparent from the record.

Analysis: The record did not establish a rectifiable error. The assessee denied clandestine removal, and even on the Revenue's own computation the duty paid through PLA exceeded the credit allegedly relatable to such removals, supporting the conclusion that the credit stood effectively reversed.

Conclusion: No error apparent from the record existed on this ground either.

Issue (iii): Whether the claim of exemption for parts of irrigation systems disclosed any rectifiable error.

Analysis: The admissibility of exemption had not been disallowed by the original authority on this basis, and no appeal had been filed by the Revenue against that finding. The attempt to reopen the issue in rectification proceedings was therefore impermissible.

Conclusion: No rectifiable mistake was made out on this issue.

Final Conclusion: The application for rectification failed in entirety because none of the alleged grounds disclosed an error apparent from the record.

Ratio Decidendi: Rectification cannot be used to reopen matters that do not reveal an obvious error on the face of the record, and exemption under a notification cannot be denied by importing a condition not found in the notification itself.

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