Higher notional credit under Rule 57B is confined to duty covered by the exemption notification, not special excise duty.

Rule 57B allowed higher notional credit only where inputs were cleared under an exemption notification that itself granted such credit. The commentary explains that a notification issued under Rule 8(1) and exempting only basic excise duty did not extend to special excise duty levied under Finance Acts. Because the notification did not expressly cover special excise duty or provide higher credit for it, the proviso to Rule 57B was not satisfied. The stated position is that higher notional credit was confined to the duty covered by the exemption notification, and could not be claimed for special excise duty.

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Issues: Whether higher notional credit under Rule 57B of the Central Excise Rules, 1944 was admissible in respect of special excise duty, or whether such higher credit was confined only to basic excise duty covered by the exemption notification.

Analysis: Rule 57A permitted credit of specified duty actually paid on inputs, while Rule 57B extended a higher credit only where the inputs were cleared under an exemption notification issued under Rule 8(1) or Section 5A(1) of the Central Excises and Salt Act, 1944 and where that notification itself provided for such higher credit. The exemption notification in question was issued under Rule 8(1) simpliciter and, on its terms, exempted only the duty of excise leviable on goods specified in the tariff schedule, namely basic excise duty. Special excise duty was levied under the annual Finance Acts and was not covered by that notification. The proviso to Rule 57B was therefore not satisfied for special excise duty, and the earlier Tribunal decisions were followed rather than treated as sub silentio.

Conclusion: Higher notional credit under Rule 57B was not admissible for special excise duty. The claim was rejected and the assessee's appeal failed.

Ratio Decidendi: Where a concessional-exemption notification issued under Rule 8(1) covers only basic excise duty, the higher-credit facility under Rule 57B cannot be extended to special excise duty unless the notification itself expressly provides for such higher credit.

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