TMI Blog2002 (5) TMI 49X X X X Extracts X X X X X X X X Extracts X X X X ..... . It is to be noted at this juncture that the substantive right has not been taken away by the introduction of the proviso to the rule in question but a procedural restriction was introduced which, in our opinion, is permissible in law. Therefore, in our opinion, the law laid down by this Court in Eicher's case ( 1999 (1) TMI 34 - SUPREME COURT OF INDIA ) does not apply to the facts of these cases. - 2359 of 1999 - - - Dated:- 2-5-2002 - N. Santosh Hegde and Shivaraj V. Patil, JJ. [Judgment per : Santosh Hegde, J.]. - In regard to the interpretation of the second proviso to Rule 57G of the Central Excise Rules, 1944 (for short 'the Rules'), two different Benches of the Customs, Excise Gold (Control) Appellate Tribunal (for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unal, contending that the benefit of the credit which had accrued to them prior to the introduction of the second proviso to the said rule, cannot be taken away by introduction of a limitation because it was a vested right accrued to them prior to the coming into force of the said proviso to the Rule. They also contend that the said proviso is not retrospective in its operation and is only applicable to the inputs received by a manufacturer after the introduction of the said proviso. They also contend that since the said proviso did not specifically state that it is taking away the vested right of a manufacturer, the proviso should be read to mean that the same is not applicable in regard to the credit accrued to a manufacturer prior to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n is applicable to the cases of manufacturers who had received their inputs prior to the introduction of the said proviso and are seeking to take credit in regard to the said inputs beyond the period of six months. 7. Having heard the arguments of the parties and after considering the rule in question, we think that by introducing the limitation in the said proviso to the rule, the statute has not taken away any of the vested rights which had accrued to the manufacturers under the Scheme of Modvat. That vested right continues to be in existence and what is restricted is the time within which the manufacturer has to enforce that right. The appellants, however, contended that imposition of a limitation is as good as taking away the vested r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... our opinion, is permissible in law. Therefore, in our opinion, the law laid down by this Court in Eicher's case (supra) does not apply to the facts of these cases. This is also the position with regard to the judgment of this Court in Collector of Central Excise, Pune Ors. v. Dai Ichi Karkaria Ltd. Ors. [1999 (7) SCC 448]. 8. It is vehemently argued on behalf of the appellants that in effect by introduction of this rule, a manufacturer in whose account certain credit existed, would be denied of the right to take such credit consequently, as in the case of Eicher (supra), a manufacturer's vested right is taken away, therefore, the rule in question should be interpreted in such a manner that it did not apply to cases where credit in qu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e sense it does not cancel the credits nor does it in any manner affect the rights of those persons who have already taken the credit before coming into force of the rule in question. It operates prospectively in regard to those manufacturers who seek to take credit after the coming into force of this rule. Therefore, in our opinion, the Tribunal was justified in holding that the rule in question only restricts a right of a manufacturer to take the credit beyond the stipulated period of six months under the rule. Therefore, this appeal will have to fail. 10. However, in C.A. Nos. 6199-6201/2000, learned Senior Counsel appearing for the appellants, pointed out that it had specifically questioned the imposition of penalty but the Tribunal h ..... X X X X Extracts X X X X X X X X Extracts X X X X
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