Higher notional Modvat credit may be claimed later when rules do not expressly prohibit differential credit.

Higher notional Modvat credit may be taken at a later stage within a reasonable time from the original input credit where the rules do not expressly prohibit it. The note states that the credit was claimed within six months, and that earlier Tribunal authority had accepted enhanced credit when taken within a reasonable period. Rule 57D of the Central Excise Rules, 1944 was treated as not barring such differential credit, so the departmental objection was not accepted and the assessee's entitlement to the higher credit was maintained.

---

---

Issues: Whether the assessee was entitled to avail higher notional Modvat credit at a later date within a reasonable time, and whether Rule 57D of the Central Excise Rules, 1944 barred such differential credit.

Analysis: The credit was taken within six months of the original input credit, and earlier Tribunal authority had taken the view that enhanced credit could be availed within a reasonable period. Rule 57D did not expressly debar the taking of such higher notional credit at a subsequent stage, and the departmental objection was therefore not accepted.

Conclusion: The assessee was entitled to the higher notional credit within a reasonable time, and the departmental challenge failed.

Final Conclusion: The appeal was rejected, leaving the order in favour of the assessee undisturbed.

Ratio Decidendi: Where the rules do not expressly prohibit it, higher notional Modvat credit may be availed within a reasonable time from the original credit, and such availment cannot be denied merely because it is taken at a later stage.

---