Limitation barred a Modvat credit demand for June 1991, and the earlier order was rectified accordingly.

A demand for alleged wrongful Modvat credit taken in June 1991 was found to be time-barred because the show cause notice was issued on 1-1-1992. The limitation plea had been raised at the hearing but was not considered in the earlier order, and the record supported the objection. The final order was therefore rectified, with the impugned order otherwise maintained but the demand relating to June 1991 excluded as barred by limitation.

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Issues: Whether the demand relating to alleged wrong taking of Modvat credit for June 1991 was barred by limitation and whether the final order required rectification on that ground.

Analysis: The credit was taken in 1991 and the show cause notice was issued on 1-1-1992. The record of hearing showed that the limitation plea had been raised and had not been considered in the earlier order. On these facts, the demand for the relevant month was beyond limitation.

Conclusion: The limitation objection was accepted, and the final order was rectified to the extent that the impugned order was upheld except for the demand relating to June 1991, which was held to be time-barred.

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