1998 (6) TMI 137 - AT - Central Excise

Summary

Issues:
Admissibility of Modvat credit for invoices taken after six months of issue of duty paying documents.

Analysis:
The appeal concerned the admissibility of Modvat credit for three invoices taken after six months of the issue of duty paying documents. The appellant argued that despite the delay, they were entitled to the credit as they had taken the credit in RG 23 Part I within six months of the invoice dates. The delay in taking credit in RG 23 Part II was due to circumstances beyond their control, specifically the non-receipt of necessary documents. The appellant relied on previous judgments to support their claim that the time limit for claiming Modvat credit could be relaxed if the claim was staked within six months of the relevant date. However, the respondent contended that the proviso to Rule 57G, introduced in 1995, explicitly barred the taking of Modvat credit after six months from the date of issuing duty paying documents. The respondent argued that the citations provided by the appellant were irrelevant as they did not address the limitation imposed by Rule 57G. After considering both arguments, the judge agreed with the respondent, emphasizing the clear and categorical time limit set by Rule 57G. The judge found that the appellant's arguments regarding the accrual of Modvat credit were not applicable in light of the specific provision of Rule 57G. Consequently, the appeal was dismissed.