Procedural limitation under amended Rule 57-I applies to show cause notices issued after the amendment, even for earlier Modvat credit.

The amended Rule 57-I of the Central Excise Rules, 1944, introducing a limitation period by Notification No. 28/88 (N.T.) dated 06-10-1988, was applied to a show cause notice issued after the amendment even though the Modvat credit had been taken earlier. Limitation was treated as procedural, so the governing provision was the one in force on the date proceedings were initiated, unless a contrary intention appeared. On that basis, the later amendment governed the notice and the earlier absence of an express time-limit did not prevent its application. The Tribunal also held that no referable question of law arose for High Court reference.

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Issues: Whether the amended Rule 57-I of the Central Excise Rules, 1944, incorporating a time-limit by Notification No. 28/88 (N.T.) dated 06-10-1988, applied to a show cause notice issued after the amendment in respect of Modvat credit taken before the amendment, and whether any question of law arose for reference to the High Court.

Analysis: The notice was issued after the amendment came into force, and the applicable limitation provision was therefore the one in force on the date of initiation of proceedings. Limitation was treated as procedural in nature and, unless a contrary intention appears, procedural amendments operate retrospectively for future action. On that basis, the amended Rule 57-I governed the notice, and the earlier absence of an express time-limit did not prevent application of the amended provision. Since the Tribunal's view followed the settled principle that proceedings are governed by the limitation regime prevailing when the notice is issued, no referable question of law arose.

Conclusion: The amended Rule 57-I applied to the notice issued after 06-10-1988, and the reference application was not maintainable.

Final Conclusion: The Revenue's request for reference failed, and the connected stay request also did not survive.

Ratio Decidendi: A procedural limitation provision introduced by amendment applies to a show cause notice issued after the amendment, even where the underlying credit or cause of action arose earlier.

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