2013 (9) TMI 718 - AT - Central Excise

CENVAT credit in respect of exemptd goods - Reversal of credit - Retrospective amendment of Finance Act - Held that - that as per the provisions of Finance Act, 2010 vide which the Rules were amended retrospectively provides that the manufacturer has to reverse the amount along with interest and has to file an application within a period of six months from the date on which the Finance bill receives the assent of the President of India - the appellants filed necessary application after six months and the Commissioner has no power to condone the delay in filing the application - Decided against assessee.

Summary

Issues:
Application for keeping proceedings in abeyance due to rejection of application filed by the appellants as time-barred.

Analysis:
The appellants filed an application for keeping proceedings in abeyance following the rejection of their application by the Commissioner of Central Excise as time-barred due to retrospective amendments in Central Excise Rules and Cenvat Credit Rules. The appellants argued that the Rules were amended retrospectively by the Finance Act, 2010, requiring manufacturers to file an application after reversing credit availed on inputs used in manufacturing exempted goods. They claimed to have reversed/deposited the credit within the prescribed six-month period from the date of assent by the President of India but filed the application to the Commissioner after this timeframe. The Finance Act, 2010 mandated manufacturers to reverse the amount with interest and submit an application within six months from the date of the Finance Bill receiving the President's assent. However, the appellants admitted to filing the necessary application after the stipulated six months, and the Commissioner lacked the authority to condone this delay. Consequently, the Tribunal found no merit in the appellants' contention and dismissed the application.

This judgment highlights the significance of complying with statutory timelines and requirements, especially in cases involving retrospective amendments to rules and regulations. The Tribunal emphasized the strict adherence to the specified period for filing applications following such amendments, underscoring the importance of timely and accurate compliance with legal provisions. The decision underscores the principle that statutory provisions must be strictly interpreted and followed, and any delay in meeting prescribed timelines may result in adverse consequences, as seen in the dismissal of the appellants' application in this case. It serves as a reminder to stakeholders to stay informed about legislative changes affecting their obligations and to act promptly and in accordance with the law to avoid potential legal pitfalls and unfavorable outcomes.