Accrued duty credit under a self-contained exemption notification remained usable despite rescission and later Rule 56A changes.

Credit taken on 28-2-1986 under Notification No. 201/79-C.E. was treated as allowable because the notification operated as a self-contained scheme with its own procedure. The Tribunal noted that the Schedule to Rule 56A applied only where credit was claimed under Rule 56A itself or under a notification incorporating that procedure. Rescission of the notification did not extinguish credit already accrued for utilisation, and the later insertion of Rule 56A(8) did not justify denial of credit on the facts considered.

---

---

Issues: Whether credit of duty taken on 28-2-1986 under Notification No. 201/79-C.E. could be denied after the notification had been rescinded, and whether Rule 56A(8), as introduced by Notification No. 91/86-C.E., prevented availment of that credit.

Analysis: The credit earned up to and including 27-2-1986 was not in dispute, and the credit from 1-3-1986 onwards was not pursued. The only controversy related to the single day of 28-2-1986. The Tribunal held that Notification No. 201/79-C.E. was a self-contained notification prescribing its own procedure, and the requirement of following the Schedule to Rule 56A arose only where the benefit was claimed under Rule 56A itself or under a notification that incorporated that procedure. The rescission of the notification did not extinguish the credit already available for utilisation, and the introduction of sub-rule (8) did not justify denial of credit for that date on the facts of the case.

Conclusion: Credit taken on 28-2-1986 was allowable, and the demand to that extent was not sustainable in favour of the Revenue.

---