1997 (8) TMI 150

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.... Appellant. Shri Victor Tyagaraj, SDR, for the Respondent. [Order per : Justice U.L. Bhat, President]. - Appellant engaged in manufacture of cement, has a captive power generation plant for the user of which HSD oil is necessary. Appellant filed declaration under Rule 57G of the Central Excise Rules, 1944 seeking to avail Modvat credit on HSD oil. Assistant Commissioner held that HSD oil ....

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....ducts, as may be specified in the Notification. In other words, as Rule 57A stood at the relevant time, Modvat Scheme would be applicable only if the relevant inputs and the relevant finished products are specified by the Government in the relevant Notification. The earliest Notification was 177/86 which did not specify HSD oil as an input eligible for Modvat credit. This position continued until ....

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....pted in view of the amendment introduced in Rule 57D of the Rules by the Notification No. 11/95, dated 16-3-1995. Rule 57G of the Rules, as it stood before the amendments, dealt with allowability of credit in respect of the inputs contained in waste or refuse or by-product. It is also clarified that credit shall not be disallowed, denied on the ground that any exempted material arises during the c....

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....pose of the 2nd proviso to Rule 57D is only to carve out from the general pattern of the eligibility under Notification No. 8/95, certain inputs used for the purposes specified in the proviso and subject to the conditions prescribed by the proviso. 5. There is an apparant contradiction between Notification Nos. 8/95 and 11/95. Notification No. 8/95 denies Modvat benefit of HSD oil, but wit....