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TMI Blog2004 (12) TMI 609X X X X Extracts X X X X X X X X Extracts X X X X ..... 972, dated 21-2-1995 issued by M/s. Paper Products Ltd. It was found that the date of issue of these invoices was much before the period of six months from the date of the availment of the credit by the appellants. Therefore, show cause notice was issued to them for disallowing the Modvat credit of Rs. 1,67,530/- and after adjudication, the adjudicating authority disallowed this credit and imposed a penalty of Rs. 20,000/- on them. On appeal, the Commissioner (Appeals) upheld the order of the adjudicating authority disallowing the credit. However, he set aside the penalty imposed on the appellants. 2.Shri A. Uppadhyay, ld. Advocate appearing for the appellants pleaded that the invoices on the strength of which the appellants took the Modv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g credit, for which the appellants were not eligible to take credit as per proviso to sub-rule (2) of Rule 57G at the relevant time. The invoices were issued by the input-supplier on 21-2-1995 whereas the credit was taken in November, 1995. The appellants were not entitled for this credit. Therefore, the department issued show cause notice for recovery of this amount. He relied on the decision of the Supreme Court in case of Osram Surya (P) Ltd. v. C.C.E., Indore [2002 (142) E.L.T. 5 (S.C.)], wherein it was held that availment of credit within the introduction of time limit does not take away any vested right. It is only the time limit within which the said right is to be enforced. Hence amendment is prospective in effect. 4.I have carefu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... credit in 1995 on the invoices which were more than six months old from the date of taking the credit. Therefore, the Commissioner (Appeals) has correctly upheld that the credit is not available to the appellants and the subsequent clearances the appellants after the issue of the show cause notice has nothing to do with the charge levelled in the show cause notice. The case laws relied upon by the appellants are not relevant in the present case as in this case, the issue is limited only to taking of credit without authority of law and not allowing any exemption for recovery of credit. 5.In view of the above, there is no merit in the appeal and the same is rejected. [Order pronounced in open Court on 23-12-2004] - - TaxTMI - TMITax - ..... X X X X Extracts X X X X X X X X Extracts X X X X
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