Higher notional Modvat credit requires express notification coverage; special excise duty qualifies only for actual duty paid credit.

Higher notional Modvat credit under Rule 57B is available only where the relevant exemption notification expressly extends that benefit to the duty concerned. Special excise duty, being levied under a separate charging provision and not covered by the notification relied on, does not qualify for higher notional credit. Credit is therefore confined to the actual duty paid, and the claimed enhancement cannot be granted.

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Issues: Whether special excise duty is eligible for higher notional Modvat credit under Rule 57B.

Analysis: The provision for higher notional credit under Rule 57B operates only where the relevant exemption notification specifically extends such benefit to the duty in question. Special excise duty, though a duty of excise for certain purposes, is levied under a separate charging provision and is not covered by the exemption notification relied upon for higher credit. The benefit of Modvat credit in respect of special excise duty is therefore confined to the actual duty paid and cannot be enlarged to grant higher notional credit.

Conclusion: Special excise duty is not entitled to higher notional Modvat credit under Rule 57B, and the appeal fails.

Final Conclusion: The order disallowing the claimed higher credit was upheld and the appeal was rejected on merits.

Ratio Decidendi: Higher notional Modvat credit is available only when the exemption notification specifically provides for such credit in relation to the duty concerned; special excise duty, not being so covered, qualifies only for credit to the extent actually paid.

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