Rule 57H credit eligibility turned on alternative conditions, not cumulative proof, and no referable question of law arose.

Rule 57H allowed credit on duty-paid inputs received immediately before the dated acknowledgement of the declaration if either the inputs were in stock or received in the factory on or after 1-3-1987, or they were used in the manufacture of final products cleared on or after 1-3-1987. These conditions were treated as alternative, not cumulative, and the rule was not read as imposing an additional requirement that the inputs had to be available for verification. The objection that the alternative condition was not established was also rejected because it had not been raised earlier. Credit was therefore admissible on the facts found, and no referable question of law arose.

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Issues: Whether credit of duty paid on inputs under Rule 57H of the Central Excise Rules, 1944 was admissible where the inputs had been used in the manufacture of final products cleared on or after 1-3-1987, and whether any question of law arose for reference under Section 35G(1) of the Central Excises and Salt Act, 1944.

Analysis: Rule 57H permitted credit on duty paid inputs received immediately before the dated acknowledgement of the declaration if either of two alternative conditions was satisfied, namely that the inputs were lying in stock or received in the factory on or after 1-3-1987, or that they were used in the manufacture of final products cleared from the factory on or after 1-3-1987. The conditions were treated as disjunctive and not cumulative. The objection that credit could be allowed only on inputs available for verification was rejected because the rule itself contained no such limitation. The objection that the alternative condition was not established was also rejected as it had not been raised against the assessees at the earlier stage.

Conclusion: Credit under Rule 57H was admissible on the facts found, and no referable question of law arose.

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