Modvat credit under Rule 57H(1B): six-month limit in Rule 57G cannot be imported into the overriding provision.

Modvat credit under Rule 57H(1B) of the Central Excise Rules, 1944 cannot be denied by importing the six-month limitation attached to Rule 57G, because Rule 57H operates through a non obstante clause and overrides Rule 57G. The credit entitlement under Rule 57H depends on the specific conditions in that provision, not on restrictions meant for the overridden rule. Where the inputs were in stock and the documentary requirements were met, the assessee remained eligible for credit. The Revenue's objection based on the timing of receipt of inputs was therefore rejected.

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Issues: Whether Modvat credit under Rule 57H(1B) of the Central Excise Rules, 1944 could be denied on the ground that the inputs were received beyond six months prior to the filing of the declaration under Rule 57G.

Analysis: Rule 57H opens with a non obstante clause overriding Rule 57G, and therefore the conditions and restrictions attached to credit under Rule 57G do not control the grant of credit under Rule 57H. The six-month restriction relied upon by the Revenue is a limitation attached to Rule 57G, not to Rule 57H. The inputs were otherwise in stock and the documentary conditions were satisfied, and the interpretation adopted by the lower appellate authority was consistent with the cited Tribunal decisions.

Conclusion: The assessee was entitled to Modvat credit under Rule 57H(1B), and the Revenue's objection based on a six-month limitation was not accepted.

Ratio Decidendi: Where a rule confers credit by a non obstante clause overriding another rule, the limitation attached to the overridden rule cannot be imported into the overriding provision unless the text of the latter expressly so provides.

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