MODVAT credit on notified documents depends on prior notification; endorsed gate passes were allowed, subsidiary gate passes were not.

MODVAT credit under Rule 57G was available only on prescribed documents or additional documents notified by the Board. Credit on gate passes endorsed twice was treated as admissible because the material showed that such documents had already been notified for the relevant period, subject to rectification if that factual basis was incorrect. No comparable notification was shown for subsidiary gate passes endorsed once, so credit on those documents was not admissible. The relaxation or extension of eligible documents under the MODVAT scheme operated only from the date of notification, since the verification and control mechanism depended on notified documents.

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Issues: Whether MODVAT credit could be taken on gate passes endorsed twice and on subsidiary gate passes endorsed once for the relevant period, and whether later trade notices permitting such documents operated retrospectively.

Analysis: Rule 57G permitted credit only on documents prescribed in the rule or on such additional documents as were notified by the Board. The credit on gate passes endorsed twice was upheld on the basis of material showing that such documents had already been notified before the relevant period, and the Revenue was left at liberty to seek rectification if that factual basis was incorrect. However, no material was produced to show any notification covering subsidiary gate passes endorsed once. A relaxation or extension of the permitted documents under the MODVAT scheme could operate only from the date of the notification, because the Department's verification procedure and control mechanism depend upon the notified documents.

Conclusion: MODVAT credit on gate passes endorsed twice was admissible, but credit on subsidiary gate passes endorsed once was not admissible.

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