TaxTMI 
TaxTMI 
2001 (3) TMI 187
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....redit on the specified duties was restricted to 95% for utilisation or for payment of duty on the final products. This amendment further provided that the credit of the specified duty paid in respect of inputs, viz., naphtha, furnace oil, low sulphur heavy stock, light diesel oil, bitumen and paraffin wax falling under Chapter 27 shall be restricted in the case of input products produced or manufactured in India to the extent of amount of excise duty calculated @ 10% ad valorem and in the case of imported inputs to the extent of the amount of additional duty calculated by assuming as if the like input produced or manufactured in India is chargeable to excise duty @ 10% ad valorem. However, under Notfn. No. 60/97-C.E. (N.T.) dated 27-11-1997....
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....vat credit on the inputs upto duty calculated @ 10% was amended by Notfn. No. 60/94-C.E. (N.T.) and the specified inputs falling under Chapter 27 when imported directly by the manufacturer for his own use were excluded from the restriction of 10%. Thereby implying that the specific provisions restricting the Modvat credit to the extent of 10% were not applicable to the furnace oil imported by the party for his own use. However, it is observed that the exclusion of furnace oil from these specific provisions does not imply that it was also excluded from the general provisions regarding restriction of Modvat credit upto 95% of the duty paid. The Asstt. Commissioner in his order has also relied on the Board's Circular No. 421/54/98-CX., dated 1....
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....N.T.) as amended by Notfn. No. 14/98-C.E. (N.T.). He contends that the Modvat credit is further restricted to the equivalent of 10% of the excise duty paid on the same products manufactured in India but in the case of the import of specific petroleum products, this restriction is not applicable to the manufacturers who imported such products directly for their own use and received them in their factory on or after 27-11-1997 under Notfn. No. 60/97-C.E. (N.T.). He contends that since they satisfy all the conditions specified in this notification; they are entitled to avail the credit of full amount of additional duty of customs paid on furnace oil imported by them and there is no warrant to restrict the same to 95% of such duty under the gen....
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....tification are not applicable to their goods so as to restrict the Modvat credit in their case to 95% of the additional duty of customs paid by them. I find no force in this contention. It is observed that admittedly the notification under consideration restricts the availment of the modvat credit to 95% of the duty of central excise or additional duty of customs paid on the inputs. The special provisions for specified petroleum products under this notification are covered by a 'further proviso'. This means that those of such goods, not covered by the conditions of the 'further proviso', would fall within the general provisions of the notification. The above cited Board's instructions dated 10-9-1998 though provide that the restrictions of ....