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PJ/Case Laws/2012-13/1535

Is there any time period for availing Cenvat Credit?
 

Case:- Central Bank of India V. C.C.E. & ST, Coimbatore

 

Citation:-2012-TIOL-1314-CESTAT-MAD

 

Brief Facts:- The appellant has taken Cenvat Credit in year 2009 for the period from October 2004 to March 2009. The revenue issued Show cause Notice, as the Cenvat credit has not been taken within a reasonable time period of one year, proposed to levy penalty and interest. Both the lower authorities confirmed the demand by denying the Cenvat credit and imposed interest and penalty. Aggrieved by the said order, the appellant filed appeal before Tribunal.

 

Reasoning of Judgement:- The Tribunal heard both the parties and considered that the issue involved in the instant appeal falls within a narrow compass.  The appellant took Cenvat credit in the year 2009 for the period from October 2004 to March 2009. Considering the submissions made by both sides, nowhere in the Central Excise Act as well as in the Cenvat Credit Rules not prescribed any period in which credit has to be taken. Although it is mentioned in the Cenvat Credit Rules that assessee can take the credit immediately, but there is no prescribed time limit neither in the Cenvat Credit Rules nor in the Central Excise Act, therefore, after waiving of the requirement of pre-deposit, Tribunal took up appeal itself for final disposal.

 

The Tribunal also finds that the observation made by both the lower authorities that credit is to be taken within a period of one year is totally incorrect and unacceptable. In view of this observation, impugned order is set aside and the appeal is allowed with consequential relief if any. Stay application also disposed off in the above terms.

 

Decision:- Appeal allowed with consequential relief if any.

 

Comment:- The crux of this case is that when no period is prescribed for taking Cenvat Credit in the Central Excise Act as well as in the Cenvat Credit Rules, it is at the option of the assessee to take cenvat credit either immediately or at a later point of time.

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