1 mgj IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION Central Excise Appeal No. 93 of 2004 The Commissioner of Central Excise, Mumbai V ..Appellant vs. M/s National Leather Cloth Mfg. Co. ..Respondent Mr.R.G.Bhatt for appellant. Mr.Prakash Shah i/b PDS Legal for respondent CORAM: V.C.DAGA AND K.K.TATED JJ 15th March ,2010 P.C. Perused appeal. 1 Heard the learned Counsel appearing for the appellant and respondent respectively. 2 This appeal was admitted by order dated 21st September, 2005 to consider the following two substantial questions of law. a) Whether the Notification no.18/90 2 (NT) dated 16-05-1990 could be made applicable retrospectively? If no what is the effective date when the effective date is not specifically mentioned therein? Whether it could be made applicable from the date of its issuance? b) Whether the Commissioner (Appeals) was right in law in holding that it is a well settled fact that in case of inputs, where the rate of credit is restricted the Modvat credit should be availed with the rate prevailing on the date of receipt of the inputs in the factory? 2 Learned Counsel appearing for the Revenue fairly states that so far as the first question is concerned, the same does not arise for consideration from the order. In his submission notification dated 16th May 1990 was rightly held to be prospective in operation. In the above view of the matter so far as the first question is concerned, the the view taken by the authorities below 3 cannot be faulted. 3 So far as the second question is concerned, if the notification is to operate with effect from 16th May 1990 then the rate of modvat credit has to be from the date of notification i.e. 16th May 1990. 4 In the above view of the matter both questions are answered against the Revenue and in favour of the appellant. Appeal stands disposed of with no order as to costs. (K.K.TATED J.) (V.C.DAGA J.)