Modvat credit demand time-barred where Rule 57-I limitation ran from date of credit and notice was issued late.

Demand denying Modvat credit was held time-barred because Rule 57-I required the six-month limitation period to run from the date credit was taken, and the notice itself recorded that date. As the show cause notice was issued beyond that period, the limitation plea succeeded and the impugned demand order was set aside.

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Issues: Whether the demand denying Modvat credit was barred by limitation under Rule 57-I of the Central Excise Rules, 1944.

Analysis: The notice itself recorded the date on which credit was taken as 17-5-1994. Rule 57-I required the six-month period to be computed from the date of taking credit. Since the show cause notice was issued beyond that period, the limitation plea was established.

Conclusion: The demand was barred by limitation and the impugned order was set aside.

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