S. B. Sinha, J. - (1.) Leave granted.
(2.) The appellant herein inter alia is engaged in manufacture of Hydrochloric Acid. It falls under Chapter Heading 29 of the First Schedule of the Central Excise Tariff Act, 1985. It uses Naphthalene for the manufacture of Hydrochloric Acid.
(3.) Chapter AA of the Central Excise Rules, 1944 (for short "the Rules") provides for credit of duty paid on excisable goods used as inputs (hereinafter referred to as "the Modvat Credit Scheme"). Sub-rule (1) of Rule 57A which was applicable at the relevant time reads as under: "The provisions of this section shall apply to such finished excisable goods (hereinafter referred to as the "final products"), as the Central Government may, by a notification in the Official Gazette, specify in this behalf, for the purpose of allowing credit of any duty of excise or the additional duty under Section 3 of the Customs Tariff Act, 1975 (51 of 1975) as may be specified in the said notification (hereinafter referred to as the "specified duty") paid on the goods used in or in relation to the manufacture of the said final products. (hereinafter referred to as the "inputs") and for utilizing the credit so allowed towards payments of duty of excise leviable on the final products, whether under the Act or under any other Act, as may be specified in the said notification, subject to the provisions of this section and the conditions and restrictions that may be specified in the notification." ;