2021 (11) TMI 243 - AT - Central Excise

CENVAT Credit - invoices issued prior to dated 01.09.2014 - denial of credit on the ground that it was taken after the lapse a period of six months/one year - applicability of N/N. 21/2014-CE(NT) dated 11.07.2014 - HELD THAT - An identical issue was examined by Hon ble High court of Delhi in GLOBAL CERAMICS PVT. LTD., M/S. B.R. CERAMICS (P) LTD. VERSUS THE PRINCIPAL COMMISSIONER OF CENTRAL EXCISE, DELHI-1 2019 (5) TMI 1432 - DELHI HIGH COURT where it was held that the appellant is entitled for the Cenvat Credit since all the invoices on which cenvat credit was claimed were issued prior to 01.09.2014. Appeal allowed - decided in favor of appellant.

Summary

Issues:
1. Denial of cenvat credit of invoices issued prior to 01.09.2014.
2. Applicability of Notification No. 21/2014-CE(NT) dated 11.07.2014.
3. Interpretation of the limitation period for availing cenvat credit.

Analysis:
1. The appeal was filed against the denial of cenvat credit for invoices issued before 01.09.2014, citing a lapse in the period for claiming credit. The central issue was the interpretation of Notification No. 21/2014-CE(NT) dated 11.07.2014, specifically the proviso added to Rule 4 of the Cenvat Credit Rules 2004. The Tribunal considered a similar case decided by the Hon'ble High Court of Delhi and a previous order passed in the appellant's case for a different unit. The Tribunal examined whether the cenvat credit availed after 01.09.2014 for invoices issued before that date was time-barred under the mentioned notification.

2. The Tribunal referred to the case law of Bharat Aluminium Company Ltd. v. Joint Commissioner of Central Excise, Central Tax Goods and Service Tax, where it was held that the 6-month limitation specified in Notification No. 21/2014-CE(NT) does not apply to invoices issued before 01.09.2014. This interpretation was supported by various decisions such as Indian Potash Ltd. v. Commissioner of Central GST, Hindustan Coca Cola Beverages Pvt. Ltd. v. Commissioner of Central Tax, and others. The Tribunal emphasized that the issue was settled in favor of the assessee based on the Delhi High Court judgment in the case of Global Ceramics Private Limited and others.

3. Consequently, the Tribunal allowed the appeal, relying on the precedent set by the Delhi High Court judgment and the established interpretation that the limitation period for claiming cenvat credit did not apply to invoices issued prior to 01.09.2014. The Tribunal directed the Original Adjudicating Authority to verify that the invoices in question indeed predated 01.09.2014, ensuring compliance with the decision. The decision was based on the settled law and clear judicial precedents, ultimately upholding the appellant's entitlement to the cenvat credit for the invoices issued before the specified date.