2007 (3) TMI 257

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....to the Department, Rule 57E of Central Excise Rules, 1944 underwent an amendment with effect from 15-4-1987 which according to the department operated prospectively and consequently the claimant was not entitled to avail Modvat credit of differential duty paid during the period 21-4-1986 to 2-4-1987. 2. The respondent-assessee is a manufacturer of motor vehicles. Assessee had received inputs under the cover of specified documents between the period 21-4-1986 to 2-4-1987. After receipt of those inputs the price of those inputs stood revised by the supplier cum manufacturer of the inputs and consequently additional duty became payable on the enhanced price which the assessee paid during the period 19-12-1986 and 28-10-1987. The credit, how....

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....y provided that if the duty paid on any inputs in respect of which credit has been allowed under Rule 57A, is varied subsequently due to any reason resulting in refund, the credit alone shall be varied accordingly by adjustment in the credit account maintained under Rule 57G(3) (with which we are concerned). Rule 57E underwent a change on 1-3-1987 under which it was stipulated that if duty paid on any inputs in respect of which credit has been allowed under Rule 57A and if such duty is varied subsequently due to any reason resulting in refund or if the duty is varied due to change in classification resulting in recovery then the credit allowed shall also be varied accordingly by adjudgment in the credit account maintained under Rule 57-G(3)....