2008 (1) TMI 414 - HC - Central Excise

Summary

Issues:
1. Whether credit can be allowed beyond 6 months of the date of the duty paying document as per Rule 57G(2) of Central Excise Rules?
2. Whether the decision of CEGAT allowing credit beyond 6 months of the issue of the duty paying document is justified?

Analysis:
1. The case involved a dispute regarding the allowance of credit beyond the prescribed time limit of 6 months from the date of the duty paying document as per Rule 57G(2) of the Central Excise Rules. The Tribunal referred two questions to the High Court for consideration. The High Court examined the facts, including the delay in dispatching the certificate by the supplier to the assessee. The assessing officer and the Tribunal found that the assessee availed the credit within six months from the actual receipt of the certificate. The High Court held that since the assessee was not aware of the date of obtaining the certificate by the supplier, it was not at fault for availing the credit within six months from the date of actual receipt of the certificate. Therefore, the High Court concluded that the questions referred by the Tribunal did not arise for consideration in this case.

2. The second issue pertained to the justification of the CEGAT's decision in allowing credit beyond 6 months of the issue of the duty paying document. The High Court, after examining the facts and circumstances of the case, determined that there was no necessity to answer the reference as the questions posed by the Tribunal did not arise for consideration based on the timeline of credit availed by the assessee. Consequently, the High Court dismissed the petition in light of its findings and conclusions regarding the credit availed by the assessee within the stipulated time frame.