V.P. Gulati, Member (T)

1. This appeal has been filed by the Collector of Central Excise, Bangalore, against the order of the Collector of Central Excise (Appeals), Madras, dated 22-5-1989. The appellant-Collector is aggrieved of the findings of the Collector (Appeals) holding that the respondents were eligible to take additional MODVAT credit after they discovered their mistake that they had taken a lower credit after the receipt of the goods in the factory. The learned Collector (Appeals) has held as under:-

"In the absence of restriction in the Central Excise Rules, the appellants are eligible to take credit as per specific provisions of Rule 57-B read with Notification No. 175/86. The credit of duty taken on receipt of the inputs, if not correct, the correct amount can be taken or balance amount taken subsequently, especially in the same month when the inputs were received by the assessee. I do not find any provision in Central Excise Rules, which forbids such taking of credit in RG. 23A account by the manufacturer. As such, the order of the Assistant Collector is set aside and the appeal is allowed for the reasons stated above."

2. The appellant-Collector has urged the follo