2018 (11) TMI 1966 - AT - Central Excise

CENVAT Credit - denial on the premise as per N/N. 02/14-CE (N.T.) dt. 20.1.2014, the appellant was not entitled to credit prior to the N/N. 01/10-CE dt. 6.2.2010 - HELD THAT - It is found that similarly placed assessee was allowed the credit although against those orders, the appeals have been filed by the Revenue before the Commissioner (Appeals), in that circumstance, when the Revenue is having divergent views on the issue, the extended period of limitation is not applicable. Admittedly, in this case, the show cause notice has been issued by invoking the extended period of limitation, therefore, the denial of credit is barred by limitation. The impugned order is set aside and the appeal is allowed.

Summary

The appellant appealed against denial of credit under Notification No. 02/14-CE (N.T.) dt. 20.1.2014. Appellant located in Jammu & Kashmir availed credit on inputs but was denied. Show cause notice issued after the extended period of limitation. Tribunal found similar cases where credit was allowed, so denial of credit was barred by limitation. Impugned order set aside, appeal allowed.