SANDEEP PAPER MILLS (P) LTD. Vs. CCE

JUDGEMENT

(1.) THE appeal filed by the assessee is against the orders of the authorities below denying Modvat credit of Rs. 1,34,856.63 on inputs for the period 20.11.1996 to 15.10.1997 on the ground that the credit was not admissible after a period of six months from the date of issue of the relevant invoices under Sub -rule 5 of Rule 57G of the Central Excise Rules 1944. I have examined the records and heard both sides. Ld. advocate Shri K. Kumar has given an account of the facts and has reiterated the grounds of the appeal. Ld. JDR Shri V.K. Verma has reiterated the findings of the adjudicating and first appellate authorities. It is not in dispute that the appellants had applied for permission to take inputs credit after a period of six months from the date of issue of the relevant invoices. Both the lower authorities have rejected the application on the ground of time -bar in terms of Sub -rule (5) of Rule 57G. As per that sub -rule, which was introduced on 29.6.1995 by way of an amendment to Rule 57G under Notification No. 28/95 -CE(NT), no Modvat credit could be taken after a period of six months from the date of issue of the relevant invoice covering the inputs. A question as to whether the limitation provision introduced by Notification No. 28/95 -CE(NT) had any retrospective effect had come up before a Larger Bench of this Tribunal in the case of Kusum Ingots & Alloys Ltd. v. CCE, Indore [ : 2000 (120) ELT 214 :, 2000 (93) ECR 239 (T -LB)]. The Larger Bench held that the amendment had only prospective effect and, therefore, after 29.6.1995, any Modvat credit on inputs under Rule 57A could be taken only within a period of six months from the date of issue of the relevant invoice. Ld. advocate has fairly conceded that this decision of the Larger Bench covers the question involved in the instant appeal.

(2.) IN view of the decision of the Larger Bench in Kusum Ingots (supra), I find that the issue in the present case stands covered against the appellants. Accordingly, I sustain the orders of the authorities below and reject this appeal.