Deemed credit scheme not subject to six-month document bar where the notification prescribes no time limit.

Deemed credit under Rule 57A(5) and Notification No. 29/96-CE (NT) is a separate scheme that permits credit without duty-paying documents and without any prescribed time limit. Rule 57G(5), which imposes a six-month bar on credit taken under the document-based scheme in Rule 57G(3), cannot be imported into deemed credit where the governing rule and notification do not prescribe such limitation. A taxing provision must be construed strictly, and no additional restriction can be read into the scheme. The six-month limitation therefore does not apply to deemed credit, and the issue was decided in favour of the assessee.

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Issues: Whether the six-month bar in Rule 57G(5) of the Central Excise Rules, 1944 applies to deemed credit availed under Rule 57A(5) and Notification No. 29/96-CE (NT) dated 03.09.1996.

Analysis: Rule 57A(5) operates as a separate scheme for deemed credit and permits credit in the manner and subject to the conditions specified in the notification. Notification No. 29/96 allows deemed credit to be taken at the time of clearance of the final products without production of duty-paying documents and does not prescribe any time limit. Rule 57G(5) applies to credit taken on the basis of documents specified in Rule 57G(3), whereas deemed credit under the notification is not dependent on such documents. In the absence of any prescribed limitation in the governing rule or notification, the limitation in Rule 57G(5) cannot be imported into the deemed credit scheme. A taxing provision must be construed strictly, and no additional restriction can be read into it.

Conclusion: The six-month limitation under Rule 57G(5) does not apply to deemed credit under Rule 57A(5) and Notification No. 29/96-CE (NT). The question was answered against the Revenue and in favour of the assessee.

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