JUDGMENT

S.H. KAPADIA, J. - In this civil appeal filed by the Department the short question which arises for determination is whether the assessee was entitled to avail MODVAT credit on differential duty paid during the period 21 - 4 - 1986 to 2 - 4 - 1987 in respect of inputs received in his factory during the year 198687 which inputs were utilised between the period 16 - 8 - 1987 and 30 - 12 - 1987. According to the Department, Rule 57 - E of the Central Excise Rules, 1944 underwent an amendment with effect from 15 - 4 - 1987 which according to the Department operated prospectively and consequently the claimant was not entitled to avail MODVAT credit of differential duty paid during the period 21 - 4 - 1986 to 2 - 4 - 1987.

2. The respondent assessee is a manufacturer of motor vehicles. The assessee had received inputs under the cover of specified documents between the period 21 - 4 - 1986 to 2 - 4 - 1987. After receipt of those inputs the price of those inputs stood revised by the supplier - cum - manufacturer of the inputs and consequently additional duty became payable on the enhanced price which the assessee paid during the period 19 - 12 - 1986 and 28 - 10 - 1987. The credit