TaxTMI 
TaxTMI 
2000 (12) TMI 129
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....credit of Central Excise duty on furnace oil at the rate of 15% ad valorem. The Notification No. 14/97-C.E., dated 3-5-1997 issued under Rule 57A restricted the credit to 10% on furnace oil. The department alleged that the Modvat credit on furnace oil used as fuel in the factory was restricted to 10% as per Notification No. 5/94-C.E., dated 1-3-1994. The department, however, observed that the restriction imposed by Notification No. 5/94-C.E. as amended by Notification No. l4/97-C.E. would be applicable in respect of inputs mentioned in Rule 57B also and, therefore the appellants were entitled to Modvat credit only to the extent 10% and not the entire duty paid on furnace oil. 3.Arguing the case for the appellants, Shri V. Sridharan, ld. ....
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....e said that all terms and conditions of Rule 57A are borrowed or incorporated in Rule 57B. 4.Ld. Counsel submits that Rule 57B starts with a non-obstante clause and therefore provisions of Rule 57B will prevail over the provisions of Rule 57A. He submits that the authorities below have overlooked this aspect. He submits that Notification No. 14/97 dated 3-5-1997 was issued under Rule 57A and, therefore the restrictions under the notification does not apply to Rule 57B. He submits that the items mentioned in the Notification No. 14/97 namely, naphtha, furnace oil, low sulphur heavy stock and light diesel oil are used as raw materials in the manufacture of final products. He submits that when they are so used and are described as feedstock....
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.... words "No credit has been taken under Rule 57A or under Rule 57B". He, therefore submits that the above notification clearly shows that the Government has always maintained a distinction between credit availed under Rule 57A and Rule 57B. He submits that earlier Rule 57G(1) which related to Modvat declaration indicated that a person availing credit under Rule 57A has to file a declaration. He submits that this Rule was amended by Notification No. 46/97-C.E., dated 1-9-1997 to include Rule 57A or Rule 57B. He submits that this Tribunal by its final order No. A/684-89/2000-NB dated 18-8-2000 held in para 11 is as under :- "Having discussed the various aspects as above, we find that for purpose of finding the specified duty, we have invari....
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....sofar as the amount of credit is concerned. Sub-Rule (3) of Rule 57A provided that the Central Government may also specify in the said notification the goods or class of goods in respect of which the credit of specified duty may be restricted. Rule 57B reading as "(1) Notwithstanding anything contained in Rule 57A, the manufacturer of final products shall be allowed to take credit of the specified duty paid on the following goods, used in or in relation to the manufacture of the final products whether directly or indirectly and whether contained in the final products or not." 9.The emphasis of the Counsel for the appellants was on the words "to take credit of the specified duty paid" very important in Rule 57B. His contention was that th....