Strict six-month limit on Modvat credit bars later claim for differential credit under fiscal rules.

Rule 57G(5) of the Central Excise Rules, 1944 was applied strictly to bar Modvat credit claimed after six months from the date of the duty-paying documents. The provision was treated as a time restriction admitting no exception for a later claim of balance or differential credit, even where part credit had already been taken within time. The limitation was viewed as procedural but final, and equitable considerations could not override the fiscal rule. The later authoritative ruling on the same rule was preferred over the assessee's earlier relied-upon decision. The differential Modvat credit was therefore not available.

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Issues: Whether differential Modvat credit, claimed after expiry of six months from the date of the duty paying documents though part credit had been taken within time, was barred by Rule 57G(5) of the Central Excise Rules, 1944.

Analysis: Rule 57G(5) expressly bars taking credit after six months from the date of issue of the relevant documents and admits of no exception for a later claim of the balance or differential credit. The principle of limitation was treated as one of procedure, intended to bring finality, and the provision governing Modvat credit was read strictly as a fiscal rule without adding any exception on equitable considerations. The earlier decision relied upon for the assessee was distinguished because the authoritative later ruling on the same rule treated the six-month period as a restriction on the right to take credit beyond the stipulated time.

Conclusion: The bar of limitation applied, and the assessee was not entitled to the differential Modvat credit claimed after six months.

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