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of <h1>Manufacturers win appeal over credit time limit dispute under Central Excise Rules</h1> The appeal involved a dispute over the time limit for taking credit by manufacturers under Rule 57G(5) of the Central Excise Rules, 1944. The appellants ... Cenvat/Modvat - Inputs - Limitation for taking credit Issues involved: Interpretation of Rule 57G(5) of the erstwhile Central Excise Rules, 1944 regarding the time limit for taking credit by manufacturers.Summary:The case involved a dispute where the appellants, engaged in manufacturing Transformers, had taken credit under Rule 57F(4) of the Central Excise Rules, 1944, but were alleged to have contravened Rule 57G(5) by taking credit after six months from the date of issue of documents. The Adjudicating authority and the Commissioner (Appeals) upheld the demand of duty.Upon hearing both sides and examining the record, it was noted that Rule 57G(5) prohibits manufacturers from taking credit after six months from the date of document issuance. However, it was found that the goods were received back within 180 days from the date of issue of the challan, thus complying with Rule 57F(7) of the Rules. Since the appellants availed credit based on the challan issued under Rule 57F(4), Rule 57G(5) could not be invoked. Citing precedent, it was established that if the initial credit was taken within the prescribed period, the bar of 180 days did not apply. As the initial credit was availed within the time limit as per Rule 57G(5), the demand of duty was deemed unsustainable. Consequently, the impugned order was set aside, and the appeal was allowed with consequential relief.
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