Modvat credit and transitional credit under Rules 57G and 57H referred to a Larger Bench for consideration

Modvat credit was considered in relation to inputs used for final products cleared after filing the Rule 57G declaration, and transitional credit under Rule 57H was considered for inputs contained in semi-finished or finished goods lying in the factory on the declaration date. The matter was not decided on merits; the issue was referred to the President for constitution of a Larger Bench.

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Issues: Whether Modvat credit could be availed on inputs used in the manufacture of final products cleared after filing declaration under Rule 57G of the Central Excise Rules, and whether transitional credit under Rule 57H was available on inputs contained in semi-finished or finished goods lying in the factory on the date of filing the declaration.

Outcome: The matter was not finally decided on merits and the question was referred to the President for constitution of a Larger Bench.

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