CVD credit rectification under Bill of Entry was not barred by the six-month limit under Rule 57G(5).

CESTAT, Mumbai held that the 6-month limit under Rule 57G(5) of the Central Excise Rules, 1944 did not apply to correction of a wrongly availed CVD credit where the input was received under a Bill of Entry. The Tribunal treated the matter as rectification of an erroneous credit entry, not as taking credit belatedly beyond the prescribed period, and relied on its earlier decisions to the same effect. The assessee was therefore entitled to take the correct amount of credit.

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Issues: Whether the time limit of 6 months under Rule 57G(5) of the Central Excise Rules, 1944 applied to correction of wrongly availed CVD credit in respect of an input received under Bill of Entry.

Analysis: The credit initially taken was found to be incorrect and was later corrected, so the case was treated as one of rectification of an erroneous credit entry rather than availing credit beyond the prescribed period. The Tribunal also relied on its earlier decisions holding that the 6 months time limit under Rule 57G(5) does not apply where credit is taken on input received under Bill of Entry.

Conclusion: The time limit under Rule 57G(5) was not applicable, and the assessee was entitled to take the correct amount of credit.

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