Rule 57G(2) withdrawal of deemed Modvat credit operates from publication, not from actual knowledge of the assessee.

Withdrawal of deemed Modvat credit under Rule 57G(2) was treated as effective from the date the withdrawal order was issued and publicly made known, not from the date the assessee actually acquired personal knowledge of it. The Tribunal held that once the order had been validly issued and published through the normal mode, the assessee could not continue to claim the credit until subjective awareness arose. The authorities relied on by the assessee were distinguished because the demand rested on the withdrawal order itself, not on a Trade Notice. The claim that deemed credit survived until actual knowledge was rejected.

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Issues: Whether withdrawal of deemed Modvat credit under Rule 57G(2) became effective only when the assessee actually came to know of the order, or from the date on which the order was issued and publicly made known.

Analysis: The order withdrawing the deemed credit facility was issued under the second proviso to Rule 57G(2) before the relevant date and was treated as effective from that date. The Tribunal distinguished the authorities cited by the assessee, holding that the original and appellate orders were founded on their own reasons and on the legal effect of the withdrawal order, not on the Trade Notice. Once the withdrawal order had been issued and made known through the normal mode of publication, the assessee could not claim the benefit merely until it subjectively became aware of the withdrawal.

Conclusion: The contention that deemed Modvat credit continued until actual knowledge of withdrawal was rejected.

Ratio Decidendi: A withdrawal order issued under Rule 57G(2) takes effect from its operative/publication date, and not from the date on which a particular assessee becomes personally aware of it, where the demand is based on the withdrawal order itself and not on a Trade Notice.

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