Notional credit under Rule 57B cannot be denied merely because inputs came through job work rather than direct purchase.

Notional credit under Rule 57B could not be denied merely because inputs were received through job work from a small scale unit rather than purchased directly. The term "obtained" was not confined to purchase, and the rule contained no express limitation supporting that restricted construction. As Modvat credit on the goods received from job work was otherwise admissible, refusal of the corresponding notional credit was unjustified. The benefit was therefore held admissible to the assessee.

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Issues: Whether notional credit under Rule 57B could be denied on the ground that inputs were received through job work from a small scale unit rather than purchased directly.

Analysis: The credit on the goods received from the job worker was not in dispute; only notional credit was refused on the reasoning that the word "obtained" in Rule 57B meant purchased. The provision did not support such a restricted meaning, and the absence of any express limitation in the rule made the departmental construction untenable. Since Modvat credit was otherwise admissible on the goods received from job work, denial of the corresponding notional credit was found to be unjustified.

Conclusion: The denial of notional credit was unsustainable and the benefit was held admissible to the assessee.

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