Rule 56-A proforma credit cannot be denied solely for absence of a set-off register when prescribed procedure is otherwise followed.

Proforma credit under Rule 56-A of the Central Excise Rules could not be denied merely because a separate set-off register was not maintained, where the finished product was notified under that rule and the assessee followed its prescribed procedure. Rule 56-A was treated as a self-contained provision governing availment of credit, so insisting on an additional account beyond the rule's own requirements was unsustainable. On that basis, denial of credit solely for non-maintenance of the set-off register was not justified, and the Department's challenge failed.

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Issues: Whether proforma credit under Rule 56-A of the Central Excise Rules could be denied merely because the set-off register was not maintained.

Analysis: The finished product was notified under Rule 56-A and the assessee was therefore entitled to follow the procedure under that rule. Rule 56-A was treated as a self-contained provision prescribing its own procedure for availment of credit. In that situation, insistence on maintenance of an additional account or set-off register, and denial of credit solely on that ground, was held to be unsustainable.

Conclusion: Denial of proforma credit for non-maintenance of the set-off register was not justified, and the Department's appeal failed.

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