TaxTMI 
TaxTMI 
1995 (3) TMI 282
X X X X Extracts X X X X
X X X X Extracts X X X X
....ut under this rule. 2. The learned Consultant for the appellants pleaded that initially the suppliers of inputs to the appellants were availing the benefit of Notification 175/86 and after their clearances exceeded Rs. 75 lakhs, they opted for the benefit of Notification 72/86, as amended. He pleaded that they had opted for the benefit of Notification 175/86 and cleared their goods at the concessional rates envisaged under this Notification till the value of their clearances crossed Rs. 75 lakhs and after which limit the benefit of the lower rate of duty under Notification 175/86 ceased and they, therefore, opted for the benefit of another exemption Notification bearing No. 72/86, as amended. He pleaded that inasmuch as they had opt....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... is clear from the report of Assistant Collector, Ahmedabad, from whose jurisdiction the inputs in respect of which higher notional MODVAT credit has been claimed originated; that the suppliers of inputs to the appellants after crossing the limit of Rs. 75 lakhs upto which limit they had cleared the goods under Notification 175/86, had opted for the benefit of Notification No. 72/86. He pleaded that the gate passes under which the inputs had been received and in respect of which higher notional credit had been claimed, showed that the goods had been cleared by the suppliers availing of the benefit of Notification 72/86. He pleaded that Notification 72/86 did not provide for taking a higher notional credit and unless such a provision was the....
X X X X Extracts X X X X
X X X X Extracts X X X X
....d also that the Notification which exempts these inputs should provide for grant of a higher credit in respect of such inputs. We, therefore, now proceed to examine whether the inputs received by the appellants fulfilled these two requirements of Rule 57B. As seen from the record, the suppliers of the appellants had opted for the benefit of Notification 175/86 and cleared the goods under this Notification upto the value limit of Rs. 75 lakhs i.e. the limit provided for clearances at the exempted rates. Thereafter, they were required to, in the normal course, unless they availed of the benefit of any other Notification, to pay full rate of duty in respect of the clearances made. They at this stage opted for the benefit of Notification 72/86,....
X X X X Extracts X X X X
X X X X Extracts X X X X
....the appellants can be taken to be, for the sake of argument, operating in terms of Notification 175/86 the goods cleared by the suppliers, which were received by the appellants' factory, could not be taken to be exempted goods in terms of Notification 175/86. As it is we find from the report of the jurisdictional Asstt. Collector at Ahmedabad that classification list No. 1/89-90, dated 20-4-1989 had been approved for clearance of the goods under Notification 72/86. For the purpose of Rule 57B, therefore, the goods cannot be taken to be cleared at exempted rate in terms of Notification 175/86 which alone provides for the benefit of higher notional credit in respect of the goods cleared at exempted rate under the said Notification. Therefore,....