2001 (8) TMI 128 - HC - Customs

Credit beyond six months deemed valid in dismissal petition

The High Court of Judicature at Madras dismissed the petition as there was no fixed limitation period for taking credit, and the credit taken beyond six ... Validity of credit taken beyond prescribed period - non-retrospective operation of limitation - tribunal's factual finding on receipt of goods and payment of dutyValidity of credit taken beyond prescribed period - tribunal's factual finding on receipt of goods and payment of duty - non-retrospective operation of limitation - Whether credit taken beyond a six months period is valid where no limitation was prescribed by statute at the time credit was taken and the subsequent notification prescribing limitation was not retrospective - HELD THAT: - The Court accepted the Tribunal's factual finding that at the time the credit was taken the materials had been received and duty had been paid. There was no statutory or rule based limitation fixed when the assessee availed the credit. A later notification prescribing a six months limitation did not have retrospective effect. In those circumstances the Tribunal correctly held that credit taken beyond the subsequently prescribed six months period remained valid, since the limiting notification could not invalidate credits already lawfully taken prior to its non retrospective operation. [Paras 1]Credit taken beyond the six months period is valid; the Tribunal's conclusion is upheld.Final Conclusion: The petition is dismissed; the High Court upholds the Tribunal's finding that credits lawfully taken prior to a non-retrospective limiting notification remain valid. The High Court of Judicature at Madras dismissed the petition as there was no fixed limitation period for taking credit, and the credit taken beyond six months was deemed valid. The Tribunal's decision was upheld.