CCE Vs. INDIAN TELEPHONE INDUSTRIES LTD.

JUDGEMENT

(1.) Heard both the sides. The Revenue has filed these appeals against the order of the Commissioner of Central Excise whereby the benefit of Modvat credit was denied to the respondents on the ground that credit was availed after six months from the date of issuance of the invoices. The contention of the Revenue is that credit can be taken by a manufacturer within six months from the date of the invoice.

(2.) The contention of the respondents is that with effect from 29.6.1995, the Central Excise Rules were amended whereby the condition was imposed that credit can be taken within six months from the date of invoices and this notification is prospective in nature. The respondents relied on the decision of the Tribunal in the case of ITI v. CCE, Allahabad Final Order No. 2182/2000 -NB (SM) dated 13.11.2000 and the decision of the Hon'ble Supreme Court in the case of Osram Surya (P) Ltd. v. CCE, Indore 2002 (81) ECC 465 (SC): 2002 (142) ELT 5 SC. The Hon'ble Supreme Court in the case of Osram Surya (supra) has held that the amendment to Rule 57 -G providing six months period for taking credit is prospective in nature. The Tribunal in the case of ITI Ltd. (supra) held that before amendment to Rule 57 -G, the credit cannot be denied on the ground that it was taken beyond the period of six months.

(3.) In the present case the credit was taken prior to amendment to Rule 57 -G whereby limitation of six months was introduced for taking credit. Therefore, we find that no infirmity in the impugned order. The appeals are dismissed.