2018 (6) TMI 783

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..... of six months from the issuance of bills of entry, as long as they were working under the small scale exemption notification. Their right to avail the credit would arise only on crossing the exemption limit. Such right specifically stands extended to them by the provisions of Rule 3(2) of the Cenvat Credit Rules and cannot be extinguished by making reference to Rule 4(1). It is also well settled principle of interpretation that a particular provision of law should not be interpreted in a manner so as to render the other provision as inapplicable or ineffective. Substantive right provided under the law cannot be denied by referring to other provision, if such substantive right is otherwise available to an assessee. By adopting the prin .....

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..... aw material was imported by them. However, by the time the appellant crossed the exemption limit and started working under the cenvat scheme, the said bills of entry was more than six months old. Revenue entertained a view that inasmuch as Rule 4(1) allowed availment of credit only within a period of six months from the date of issuance of the documents, the appellants were not entitled to avail the credit on the basis of more than six months old bills of entry. Accordingly, proceedings were initiated resulting in denial of credit to the appellant. The order of the original adjudicating authority was upheld by Commissioner (Appeals). Hence, the present appeals. 4. The appellate authority, while rejecting the assessee s appeal obser .....

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..... which permits availment of credit within a period of six months from the date of issuance of the document. 6. If the said objection of the Revenue is upheld, an assessee crossing the exemption limit on a particular date, would not be able to avail the credit, thus making the provisions of Rule 3(2), as infructuous. Admittedly, the appellants were not in a position to avail the credit immediately on receipt of the goods or within a period of six months from the issuance of bills of entry, as long as they were working under the small scale exemption notification. Their right to avail the credit would arise only on crossing the exemption limit. Such right specifically stands extended to them by the provisions of Rule 3(2) of the Cenvat Cred .....

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