2001 (1) TMI 145

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.... took Modvat Credit of the entire duty paid on the furnace oil used by them as fuel; that the Additional Commissioner, under Adjudication Order No. 8/98, dated 30-4-1998 disallowed the Modvat Credit amounting to Rs.9,30,566.66 paise and imposed a penalty of equivalent amount, holding that the modvat credit in respect of furnace oil was restricted to 10% adv. and that in view of the amendment to Explanation to Rule 57B made on 2-3-1994 which was clarificatory in nature the restriction of 10% adv would be applicable to Credit taken under Rule 57B of the Central Excise Rules also; that the Commissioner (Appeals), under the impugned Order rejected their appeal holding that amendment made by Notification No. 5/98-C.E.(N.T.), dated 2-3-1998 was c....

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....RLT 546 (CEGAT) wherein it was held that Modvat credit was available in respect of HSD Oil under Rule 57 B prior to its amendment by Notification No. 5/98(N.T.), dated 2-3-1998. He also referred to the decision of the Larger Bench in the case of L & T Ltd. v. CCE, Mumbai, 2000 (119) E.L.T. 51 (T-LB), 2000 (39) RLT 132 (CEGAT-LB) wherein it was held that amendment made in Rule 57C by Notification No. 4/92-CE(N.T.), dated 1-3-1992 will not have retrospective effect. 3. Countering the arguments, Shri A.K. Jain, learned D.R., submitted that the Explanation was inserted in Rule 57B by Notification No. 5/98 (NT) by way of clarification only and a Notification which is clarificatory in nature will have retrospective effect; that the Larger Bench ....