Notional higher Modvat credit under Rule 57B was allowed within a reasonable period, as no specific limitation applied.

Rule 57B of the Central Excise Rules, 1944 did not prescribe a specific limitation for availing notional higher Modvat credit after original credit had already been taken. The Tribunal followed its earlier view that such credit could be taken within a reasonable period and accepted the explanation for the delay. On that basis, the demand for reversal of the notional higher credit was held unsustainable and the lower appellate authority's order was upheld.

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Issues: Whether notional higher Modvat credit under Rule 57B could be taken after the original credit had already been taken, and whether any specific limitation barred such later availing of credit.

Analysis: The appeal turned on the interpretation of Rule 57B of the Central Excise Rules, 1944 as it stood at the relevant time. The provision did not prescribe a specific limitation for taking notional higher credit. The Tribunal followed its earlier decisions holding that such credit could be availed within a reasonable period, and accepted the explanation for the delay in taking the credit.

Conclusion: The demand for reversal of the notional higher credit was not sustainable, and the order of the lower appellate authority was upheld.

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