The amended sub-rule (17) could not apply to vested rights, and the appellants were entitled to a refund for goods exported prior to March 1997.

ORDER

1. These appeals are against the judgments of the Customs, Excise and Gold (Control) Appellate Tribunal (for short "CEGAT") dated 9-8-2000 and 3-8-2001. The question involved is with regard to interpretation of Rule 57F(17) of the Central Excise Rules, 1944 (for short "the Rules") which was introduced by an amendment, with effect from 1-3-1997.

2. Briefly stated the facts are as follows:

The appellants are manufacturers of black-and-white picture tubes which they export under a bond. For the manufacturing of black-and-white picture tubes, they use inputs on which duty is paid by them. Under the MODVAT Scheme, which was then in existence, they were entitled to credit for the duty paid against duty payable on the final product which is used for home consumption or on final product which is exported after payment of duty or where such adjustment is not possible to a refund of the duty.

3. It is an admitted position that the appellants had paid duty on the imports. It is admitted that the appellants had credit available to them. In Civil Appeal No. 6493 of 2000, they exported under bond in January and February 1997. In Civil Appeal No. 8692 of 2001 they exported under bond between October to December 1996. As the export was under a bond, under the Rules prevailing up to February 1997, the appellants would have been entitled to a refund of duty because no adjustment was possible. However, as stated above, with effect from 1-3-1997, the Rule was amended.

4. The amended Rule 57-F(17) reads as follows:

"57-F. (17) Notwithstanding anything contained in sub-rule (12) or Rule

57-A, any credit of specified duty lying unutilised,-

(a) on the sixteenth day of March, 1995, with the manufacturer of tractors falling under Heading 87.01 or motor vehicles falling under Headings 87.02 and 87.04 or chassis of such tractors or such motor vehicles falling under Heading 87.06 of the Schedule to the Central

Excise Tariff Act, 1985 (5 of 1986) shall lapse and shall not be allowed to be utili sed for payment of duty on any excisable goods, whether cleared for home consumption or for export:

Provided that nothing contained in this clause shall apply to credit of duty, if any, in respect of inputs lying in stock or contained in finished products lying in stock on the sixteenth day of March, 1995;

(b) on the first day of March, 1997, with the manufacturer of bulk drugs falling under Chapter 28 or 29 and with the manufacturers of black-and-white picture tubes falling under Sub-Heading 8540.12 shall lapse and shall not be allowed to be utili sed for payment of duty on any excisable goods, whether cleared for home consumption or for export: Provided that nothing contained in this clause shall apply to credit of duty, if any, in respect of inputs lying in stock or contained in finished products lying in stock on the first day of March, 1997."

5. The appellants filed claims for refund on 7-4-1997 and 11-7-1997.

Those claims for refund were rejected on the ground that under the amended sub-rule (17) credit had lapsed and that the same could not be allowed. This view prevailed with CEGAT which has, by the impugned orders, dismissed their appeals.

6. Before us, reliance is placed upon a three-Judge Bench decision of this Court in the case of Eicher Motors Ltd. v. Union of Indian. In that case the validity of sub-rule (4-A) was challenged. Sub-rule (4-A) read as follows:

"57-F. (4-A) Notwithstanding anything contained in sub-rule (4), or sub-rule (1) of Rule 57-A and the notifications issued thereunder, any credit of specified duty lying unutilised on the 16th day of March, 1995, with a manufacturer of tractors, falling under Heading 87.01 or motor vehicles falling under Headings 87.02 and 87.04 or chassis of such tractors or such motor vehicles under Heading 87.06 of the Schedule to the Central Excise Tariff Act, 1985 (5 of 1986) shall lapse and shall not be allowed to be utili sed for payment of duty on any excisable goods, whether cleared for home consumpt