Modvat credit limitation starts from the date of credit, making later notice beyond time barred.

For Modvat credit taken between 6 July 1992 and 20 July 1992, the limitation period under Rule 57-I ran from the date the credit was taken, not from the date of filing the RT 12 return. The amended rule then in force was clear and unambiguous on the starting point for notice, and the later amendment of 16 March 1995 shifting the trigger to the RT 12 return was treated as a deliberate change, not a retrospective or clarificatory one. A notice issued beyond the prescribed period from the date of credit was therefore time-barred, and the assessee's limitation objection succeeded.

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Issues: Whether, for Modvat credit taken during the period from 6-7-1992 to 20-7-1992, the limitation for issuing notice under Rule 57-I of the Central Excise Rules ran from the date of taking credit or from the date of filing the RT 12 return.

Analysis: The amended Rule 57-I, applicable for the relevant interregnum between 6-10-1988 and 16-3-1995, expressly fixed the date of Modvat credit as the starting point for limitation and did not adopt the date of filing of RT 12 return. The rule was held to be clear and unambiguous, and the later amendment of 16-3-1995 changing the starting point to the date of RT 12 return was treated as a deliberate departure and not retrospective or clarificatory. Since the notice was issued beyond the prescribed period calculated from the date of credit, it was time-barred.

Conclusion: The notice was barred by limitation, and the view of the Collector (Appeals) was upheld. The limitation issue was decided in favour of the assessee.

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