2004 (12) TMI 609

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....th of the Invoices No. 3971, dated 21-2-1995 and 3972, dated 21-2-1995 issued by M/s. Paper Products Ltd. It was found that the date of issue of these invoices was much before the period of six months from the date of the availment of the credit by the appellants. Therefore, show cause notice was issued to them for disallowing the Modvat credit of Rs. 1,67,530/- and after adjudication, the adjudicating authority disallowed this credit and imposed a penalty of Rs. 20,000/- on them. On appeal, the Commissioner (Appeals) upheld the order of the adjudicating authority disallowing the credit. However, he set aside the penalty imposed on the appellants. 2.Shri A. Uppadhyay, ld. Advocate appearing for the appellants pleaded that the invoices on....

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....t in RG-23 A register on the basis of the invoices, which were issued more than six months prior to the date of taking credit, for which the appellants were not eligible to take credit as per proviso to sub-rule (2) of Rule 57G at the relevant time. The invoices were issued by the input-supplier on 21-2-1995 whereas the credit was taken in November, 1995. The appellants were not entitled for this credit. Therefore, the department issued show cause notice for recovery of this amount. He relied on the decision of the Supreme Court in case of Osram Surya (P) Ltd. v. C.C.E., Indore [2002 (142) E.L.T. 5 (S.C.)], wherein it was held that availment of credit within the introduction of time limit does not take away any vested right. It is only the ....