Mandatory Modvat credit time limit renders delayed credit inadmissible and supports penalty under excise law.

The six-month time limit for availing Modvat credit under Notification No. 28/95-C.E. (N.T.) was treated as a mandatory substantive condition, not a mere procedural requirement, so credit taken after expiry of that period was inadmissible. Because the assessee availed credit on an invoice dated 31-7-1995 beyond the permitted period, the credit claim failed. The same contravention of the excise requirements also justified penalty, which was upheld.

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Issues: Whether Modvat credit taken on the strength of an invoice after the expiry of the six-month period prescribed by the notification was admissible, and whether penalty was justified.

Analysis: The prescribed six-month period for taking credit under Notification No. 28/95-C.E. (N.T.) dated 29-6-1995 was treated as a substantive condition and not a mere procedural formality. Credit was taken after expiry of the permitted period on an invoice dated 31-7-1995, making the claim inadmissible. Since the credit was availed in contravention of the applicable excise requirements, the imposition of penalty was also upheld.

Conclusion: The Modvat credit was not admissible and the penalty was correctly imposed against the assessee.

Ratio Decidendi: A time limit prescribed for availing Modvat credit under the governing notification is a mandatory substantive requirement, and credit taken beyond that period is inadmissible.

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