2003 (7) TMI 537

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....ri H.C. Verma, JDR, for the Respondent. [Order]. - The issue in the appeal relates to the availability of the Modvat credit to the appellants and seems to be prima facie covered by the ratio of law laid down in the case of Osram Surya (P) Ltd. v. CCE, Indore, reported in 2002 (142) E.L.T. 5, by the Apex Court. Therefore, the stay application of the appellants is allowed. 2. The appea....

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.... below had disallowed the credit on this very ground. But, in my view, this ground is not legally tenable. Prior to the introduction of second proviso to Rule 57G i.e. prior to 29-6-1995, a manufacturer was entitled to withdraw the said credit at any time without there being limitation on such withdrawal. On 29-6-1995, second proviso to this rule was introduced by substituting the then existing pr....

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....ed, they took re-credit of the Modvat amount. The department could not deprive them of their right to take credit which had accrued to them on receipt of goods and which they initially took within limitation, especially when they were denied the refund of the duty. The provisions of second proviso to Rule 57G were not attracted to their case as it was not for the first time that they took the cred....