2004 (3) TMI 295

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....M/s. Empire Industries Ltd. is directed against the order-in-appeal passed by the Commissioner (Appeals), whereby the Commissioner (Appeals) upheld the restriction of Modvat credit to the extent of 10% as prescribed in Notification No. 5/94-C.E. dated 1-3-1994, as amended, in respect of certain petroleum products used by them as "fuel". The Commissioner (Appeals), however set aside the penalty and....

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....antly used as fuels. The Notification 5/94-C.E. (N.T.) which has been issued in exercise of powers conferred under Rule 57A prescribing a ceiling limit for taking credit must therefore be construed to mean credit restriction only when the use is other than fuel. 4. It must be remembered that, despite the provisions of modvat having been extended to inputs falling under Chapter 27, the use of th....

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....l in the case of Jindal Polymer v. Commissioner of Central Excise, Meerut reported in 2001 (129) E.L.T. 467 (Tri-Del.), which follows amongst others the decision of the Tribunal in the case of Jindal Polyester v. Commissioner of Central Excise, Meerut. All these decisions hold that the cap of 10% credit prescribed is the Notification No. 5/94-C.E. (N.T.) on harmonious construction, shall also appl....

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....derstand as to how a harmonious interpretation of Rules 57A and 57B as made in the judgments referred to above can lead to a conclusion that, restrictions imposed in terms of notification issued under Rule 57A can automatically apply to inputs notified under Rule 57B. It must be remembered that, Rule 57A, is a parent rule, and Notification No. 5/94-C.E. (N.T.) or its amending Notification 14/97-C.....