Erroneous CENVAT credit recovery limitation runs from the date credit is taken, restricting demand to the six-month period.

For recovery of erroneous credit under Rule 57-I of the Central Excise Rules, 1944, the limitation period of six months was to be computed from the date the credit was actually taken. Filing of RT-12 returns or receipt of inputs did not shift the relevant date. The demand therefore had to be confined to credits taken within six months before the recovery action, and recovery beyond that period was time-barred.

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Issues: Whether, for recovery of erroneous credit under Rule 57-I of the Central Excise Rules, 1944, the relevant date for computing the six-month limitation period was the date of taking credit.

Analysis: The Tribunal examined the rule as it stood at the material time and accepted that the limitation for recovering erroneous credit had to be computed from the date on which credit was actually taken, not from the date of filing RT-12 returns or the date of receipt of inputs. On that basis, the demand was required to be confined to the period of six months counted from the date of taking credit.

Conclusion: The relevant date under Rule 57-I was the date of taking credit, and the demand had to be restricted accordingly.

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