1997 (4) TMI 221

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....e. 2. The facts of the case are that the respondents are engaged in the manufacture of copper wire and aluminium wire etc. They were availing the benefit of Modvat credit under Rule 57A after filing declaration under Rule 57G. The respondents received a consignment of electrolytic copper wire from the importer. The bill of entry was in the name of M/s. Metal Linkers and the importer endorsed this bill of entry in the name of the respondents. The department alleged that the Modvat credit cannot be taken on the strength of the endorsed bill of entry. The lower authorities have decided the two issues one was about admissibility of Modvat credit on the strength of endorsed bill of entry and the second was whether the demand was hit by l....

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....ions filed by the respondents, learned JDR reiterates the findings of the lower authorities. 5. Shri Naveen Mullick, learned Advocate appearing for the respondents submits that it is the date of taking Modvat credit which is the material date during the relevant period for counting the period of six months for the purpose of limitation. He submits that Rule 57-I of the Central Excise Rules, 1944 stipulates that it is the date of taking credit and not the date of utilising the credit which is the material date for the purpose of counting the period of six months or 5 years as the case may be. He submits that in the instant case there is no mis-statement, suppression etc. as alleged nor can it be alleged therefore the demand can be ra....

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....ths from the date of such credit, serve notice on the manufacture or the assessee who has taken such credit requiring him to show cause why he should not be disallowed to such credit and where the credit has already been utilised, why the amount equivalent to such credit should not be received from him : Provided that where such credit has been taken on account of wilful mis-statement, collusion or suppression of facts on the part of a manufacturer or an assessee, the provisions of this clause shall have effect as if for the words "six months" the words "five years" were substituted. Explanation - Where the service of the notice is stayed by an order of the Court, the period of such stay shall be excluded from computing the aforesaid ....