BHAGWANDAS METALS LTD. Vs. CCE

JUDGEMENT

(1.) The short question that arises for consideration in this appeal is as to whether the demand could be confirmed for the period beyond six months from the date of show cause notice dated 6.8.1998 for the period from 26th July 1996 to 3rd May, 1997. Ld. Commissioner (Appeals), in the impugned order has noted that the Assistant Commissioner dropped the proposals for recovery beyond 3rd May, 1997 and has not accepted the plea for dropping the proceedings as time bar. On the ground that retrospective legislation was passed by the Parliament to recover 5% of Modvat credit for the period from 23rd July, 1996 to 3rd May, 1997.

(2.) I have heard Ld. Counsel Shri R. Raghavan for the appellants and Ld. SDR, Smt. Baghya Devi for the Revenue. Ld. Counsel submits that even though legislation has been passed for retrospective effect but in the absence of any show cause notice issued within the time to cover the period, the recovery cannot be done. In this regard, reliance was placed on the Apex Court judgement rendered in the case of J.K. Spinning and Weaving Mills Ltd. and Anr. v. UOI . He also relied on the Madras High Court judgement rendered in the case of Advani Oerlikon Ltd. .

(3.) Ld. DR reiterated the Commissioner's view.