2009 (1) TMI 211 - AT - Service Tax

Cenvat Credit - Delayed availment held that there is no provision for denying credit because of delay nor there is any time limit for taking credit in the CENVAT Credit Rules and therefore the stand taken by the Revenue that credit has to be taken within a reasonable period has no basis - even the supplementary instructions issued by the Board also do not prescribe any time limit for the purpose credit allowed.

Summary

The Appellate Tribunal CESTAT, Ahmedabad, in the case of 2009 (1) TMI 211, reviewed appeals against the Commissioner's order allowing delayed availment of CENVAT Credit for duty on services connected to manufacturing activities. The Tribunal considered the argument that credit should be taken immediately upon receipt of inputs, citing referencing the CENVAT Credit Rules. The Tribunal found no provision in the rules for denying credit due to delay, and no time limit is specified for taking credit. The Revenue's insistence on a reasonable period for taking credit was deemed baseless. The Tribunal rejected the Commissioner's appeals and disposed of cross-objections accordingly. The final order was pronounced in court by Shri B.S.V. Murthy, Member (Technical), on 1.1.2009, certified on 21.1.2009. The Applicant was represented by Shri D.S. Negi, SDR, and the Respondent by Shri M.J. Mehta, Consultant.