Cenvat credit on fuel oils remained capped at 10% where the notification expressly imposed that restriction.

Notification No. 14/97-CE(NT) was applied to gas oil treated as LSHS, and the notification's plain wording restricted Cenvat credit on specified fuel oils to 10% ad valorem. The assessee's claim for full duty credit was rejected because the product fell within the restricted category and the cited authorities involved different factual settings, including imported or non-APM products and resolved exemption disputes. The expressed limitation in the notification was held to prevail without further interpretative override, so credit beyond 10% was not available and the Revenue's objection succeeded.

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Issues: Whether Cenvat credit on gas oil, treated as LSHS, was confined to 10% under Notification No. 14/97-CE(NT) dated 03.05.1997, or whether the assessee could avail credit of the full duty paid.

Analysis: Notification No. 14/97-CE(NT) amended the earlier credit scheme by expressly restricting credit on specified fuel oils, including LSHS, to 10% ad valorem. The Court found that the disputed product was gas oil falling within that category. The assessee's reliance on cases involving different factual settings, including imported/non-APM products and cases where exemption disputes had already been resolved in favour of the assessee, was held to be inapplicable. The Court applied the plain language of the notification and held that, where the wording is clear, no interpretative exercise can override the express restriction.

Conclusion: The assessee was not entitled to avail credit beyond 10% and the Revenue's objection succeeded.

Final Conclusion: The impugned order allowing full credit was set aside and the appeal failed on merits, with the credit restriction under the notification upheld.

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