Modvat credit recovery was outside Section 11A limitation before 6 October 1988, affecting pre-insertion demands.

Prior to 6 October 1988, recovery of wrongly availed Modvat credit under Rule 57-I of the Central Excise Rules, 1944 was not governed by the limitation in Section 11A of the Central Excise Act, 1944, because that provision was inserted only on 6 October 1988. As the demand in question was raised in April 1987, before Section 11A existed, no statutory limitation applied to that recovery action for the relevant period.

---

---

Issues: Whether, prior to 6 October 1988, Rule 57-I of the Central Excise Rules, 1944 was subject to the limitation prescribed under Section 11A of the Central Excise Act, 1944 for recovery of wrongly availed Modvat credit.

Analysis: The demand for recovery was raised in April 1987, when Section 11A of the Central Excise Act, 1944 was not yet on the statute book. The provision was inserted only on 6 October 1988. Since the recovery action preceded the insertion of Section 11A, no statutory limitation governed the demand for recovery of the wrongly availed Modvat credit for that period.

Conclusion: The question is answered in favour of the revenue and against the assessee. Prior to 6 October 1988, Rule 57-I of the Central Excise Rules, 1944 was not subject to Section 11A of the Central Excise Act, 1944 for the demand in question.

---