Limitation finding unchallenged in Modvat credit dispute, leaving the departmental appeal without merit and dismissed.

The departmental appeal failed because it did not challenge the finding that the Modvat credit recovery demand was barred by limitation under Rule 57-1 of the Central Excise Rules, 1944 and Section 11A of the Central Excises & Salt Act, 1944. The appeal was confined to the authorised ground relating to higher notional credit on Special Excise Duty, which did not address the basis of relief granted below. In the absence of any attack on the time-bar finding, the appeal had no merit and was dismissed as not maintainable on the ground urged.

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Issues: Whether the appeal was liable to be dismissed because the challenge raised by the department did not assail the finding that the demand for recovery of Modvat credit was barred by limitation.

Analysis: The order under appeal had proceeded on the ground that the demand was time-barred under Rule 57-1 of the Central Excise Rules, 1944 and Section 11A of the Central Excises & Salt Act, 1944. The departmental appeal, however, attacked only the availability of higher notional credit in respect of Special Excise Duty and did not challenge the limitation finding. The scope of the appeal was thus confined to the ground stated in the Collector's authorisation, and that ground did not meet the basis on which the lower appellate authority had granted relief. In the absence of any challenge to the time-bar finding, there was no merit in the appeal.

Conclusion: The appeal was not maintainable on the ground urged and was dismissed.

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