NAPTHA RESINS AND CHEMICALS P LTD Vs. COLLECTOR OF C EX

JUDGEMENT

(1.) THIS appeal is directed against the order of the Collector of Central Excise (Appeals), Madras, dated 30-4-1987 confirming the order of the Assistant Collector of Central Excise, Bangalore, dated 21-11-1986 and rejecting the appellant's claim to avail MODVAT credit under the transitional provisions under Rule 57H of the Central Excise Rules, 1944, hereinafter referred to as the "Rules", in respect of chemicals.

(2.) Shri Muthumani, the learned Consultant for the appellant submitted that the appellant imported chemicals coming within the mischief of Chapter 39 of the Central Excise Tariff, 1985 and wanted to avail the MODVAT credit in respect of the countervating duty paid on the same in terms of Rule 57H of the Rules and the same was negatived by the original authority, which on appeal was also confirmed under the impugned order. The learned Consultant urged before me that the chemicals are admittedly in-puts and credit of duty paid on these in-puts is allowable if the duty had been paid subsequent to 31st day of January, 1986 in terms of Rule 57H Sub-rule (2) of the Rules and in the present case the countervailing duty having been paid on 3-2-1986 the appellant should be held entitled to take MODVAT credit under the transitional provisions.

(3.) THE short question that arises for my consideration in the appeal is with reference to the scope and amplitude of Rule 57H(2) and the interpretation thereof. For the purpose of convenience let me extract the relevant rule. Rule 57H, Sub-rule (2) reads as under. -