1992 (4) TMI 138

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....ndent Collector points out that the amount of Modvat credit involved is Rs. 386.50. In view of the small amount involved, the appeal may not be admitted. He submitted that on merits also the appellants do not have a case. He referred to an as yet unreported decision of this Bench: Order No. S 209 & 210/A-211 & 210/CAL/92 dated 28th March, 1992 in the case of M/s. Reckitt & Colman of India Limited v. Collector of Central Excise, Calcutta I [since reported in 1992 (62) E.L.T. 148 (Tri.)] wherein a similar issue had been decided and it had been held that the benefit of higher notional credit in terms of Rule 57B is not available to Special Excise Duty. 3. I have considered the submission made by Shri Saha, learned S.D.R. in the course of the ....

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....of Customs or countervailing duty, as it is known, on imported goods is one of the specified duty which will qualify for Modvat credit but not the basic Customs duty paid thereon, as it is not included within the scope of the term "Specified Duty" under Rule 57A. But special excise duty is not to rank pari passu with basic duty in the matter of grant of higher notional credit in terms of Rule 57B. This position has been considered by me in the Reckitt & Colman matter referred to above. Relevant portion of the said decision is extracted below: "6.....the availment of higher quantum of the specified duty in excess of the actual amount paid on the inputs cleared by small scale industries is regulated in terms of Rule 57B of the Central Excise....

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.... 57B. 7. The Ministry of Finance, Department of Revenue letter F. No. 345/9/88 TRU dated 18-3-1988 (referred to by Shri Kohli), no doubt, did say that the combined effect of Rule 57B, Notifications 177/86 and 175/86 was that the last mentioned Notification provided for grant of notional credit in respect of special excise duty also. This, however, has been superseded by a subsequent clarification after the amendment of Notification 175/86 with effect from 31-3-1988. The earlier clarification does not represent the correct legal position as has been made clear in my foregoing analysis........ ......special excise duty, the authority for levy of which is different from the basic excise duty is not specifically covered in the relevant provisi....