2004 (6) TMI 186

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.... such invoices reading Notification 14/97-C.E. (N.T.) which amends Notification 5/98-C.E. (N.T.), dated 1-3-94. 2. After hearing both sides and considering the issue it is found - (a)     Rule 57B is stand alone Rule in the Modvat Scheme Section VAA of the Central Excise Rules, 1944 it reads as on 2-6-98 as - "Rule 57B Eligibility of credit of duty on certain inputs. (1)  Notwithstanding anything contained in Rule 57A, the manufacturing of final products shall be allowed to take credit of ninety-five per cent of the specified duty paid on the following inputs : Provided that credit of specified duty in respect of any input received in the factory of the manufacturer of final products on or before the ....

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....th the non obstante clause. (b)     Rule 57B, beginning with an non obstante clause would rule out the application of Rule 57A. It would stipulate that Rule 57B should be read 'de hors' Rule 57A provisions, especially, in view of the Apex Court decision in the case of CCE v. ACC - 2003 (151) E.L.T. 12 (S.C.) which is a plea made by the appellant which has force and cannot be faulted. (c)      There is no power under Rule 57B to restrict the credit in excess of the 95% of the duty paid as shown on the eligibility documents as per proviso to Rule 57B(1). The amendment of 14/97-C.E., dated 3-5-97 to Notification 5/94, dated 1-3-94 issued under the powers of Rule 57A(3) & restrictions thereunde....

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....be eligible to credit. Thereafter on receipts it shall be restricted to 95% of the duty paid as per the documents. No other variation of the credit amounts as eligible would be possible. The law laid down by the Bench in the case of Jindal Polyster [2001 (129) E.L.T. 467] would not be applicable in view of the amended Rule 57B with great respect, are not applicable in the view we are taking. We are not able to apply the plea of harmonious interpretation of Rules 57A & 57B as submitted & made out in these decision relied upon by the DR, to conclude that restrictions imposed by notification under Rule 57A(3) would automatically apply, especially after the amendments of 2-6-98 by Notification 21/98-C.E. (N.T.) when parent Rule 57A(3) proviso i....