WHAT is the time limit for taking CENVAT Credit?
This was the issue before the CESTAT.
The appellants took CENVAT credit in the year 2009 for the period from October 2004 to March 2009. By a 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 this order, the appellants filed appeal before CESTAT.
CESTAT observed that nowhere in the Central Excise Act as well as in the CENVAT Credit Rules 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 either in the CENVAT Credit Rules or in the Central Excise Act.
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.
2 comments:
But what about the Notification No. 20/2007-Central Excise in regard to the North Eastern States of India, wherein refund of Excise duty for some specific industry is given only if the cenvat credit if there is- is utilized within that month and file the Excise Return within next 7 days of the month. This policy is for a specified years in order to augment industrialization in N.E. India. Please look into this matter and comment. Because another notification is also there i.e.-Notification No.which talkes about the non utilized CENVAT
Please go through the Notification No.20/2007 CE(Terrif) notification relating to taking CENVAT CREDIT within a specified period of NE states of Inida
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