Modvat credit limitation period runs from eligibility order, not invoice date, so denial was unsustainable.

Modvat credit could not be denied merely because it was availed more than six months after the invoice date, as the relevant date for computing the limitation period was the Assistant Commissioner's order determining eligibility to credit. The Commissioner (Appeals) relied on Tribunal precedent, Board instructions and the trade notice cited in the order, and found substantial compliance with the law with no other irregularity or infirmity. On that basis, the disallowance of Modvat credit was held unsustainable and the Department's challenge was rejected.

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Issues: Whether Modvat credit was to be denied on the ground that it was availed beyond six months from the date of invoice, or whether the relevant date for computing the six-month period was the date of the Assistant Commissioner's order allowing eligibility to credit.

Analysis: The Commissioner (Appeals) held that for calculating the period of six months for availment of Modvat credit, the date of the Assistant Commissioner's order determining eligibility was the relevant date and not the date of issue of the invoice. This view was supported by the ratio of the cited Tribunal decision and by the Board's instructions and trade notice referred to in the order. The order further noted that there was substantial compliance with the law and no other irregularity or infirmity.

Conclusion: The disallowance of Modvat credit was held to be unsustainable, and the Department's challenge was rejected.

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