Modvat credit time limit remained applicable; later deletion of the restriction did not revive time-barred claims.

Modvat credit on duty-paying documents issued before 29-6-1995 remained subject to the six-month limit introduced by the amendment to Rule 57G of the Central Excise Rules, 1944. The later deletion of that time limit from 1-4-2000 was treated as a prospective change in law and did not retrospectively revive or save credits already time-barred. The Larger Bench ruling in Kusum Ingots & Alloys Ltd. was followed as directly covering the issue, and the claim for credit beyond six months was held not sustainable.

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Issues: Whether Modvat credit could be allowed on duty-paying documents issued before 29-6-1995 notwithstanding the six-month time limit introduced by amendment to Rule 57G of the Central Excise Rules, 1944, and whether the later deletion of that time limit from 1-4-2000 operated retrospectively to revive or save time-barred credits.

Analysis: The amendment introducing a six-month restriction governed the relevant period and applied to credit sought on documents covered by that regime. The later amendment removing the time limit was held to be a change in law operating from 1-4-2000 and not a retrospective enlargement of entitlement for earlier periods. The decision of the Larger Bench in Kusum Ingots & Alloys Ltd., which directly dealt with the same issue, had not been overruled and was followed. The reliance on decisions concerning property disputes was found inapposite, and Notification No. 36/96 (NT) dated 20-11-1996 was held to deal with a different situation.

Conclusion: The claim for Modvat credit beyond six months was not sustainable and the objection based on retrospective effect was rejected.

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