IN THE CUSTOMS, EXCISE AND SERVICE TAX APPELLATE TRIBUNAL
WEST ZONAL BENCH AT MUMBAI
COURT NO. II (SMC)
In the matter of
COMMISSIONER OF CENTRAL EXCISE, MUMBAI IV Vs BOROSIL GLASS WORKS LTD.
Brief facts of the case:
In the present case the assessee procured inputs namely oxygen during the period April 2003 to October 2005 and they have taken the credit in October 2006. Department was of the view that Cenvat credit has been availed with inordinate delay therefore the same is not allowed as per Rule 4(1) of the Cenvat Credit Rules, 2004. However, The Commissioner (Appeals) held that there is no time period to take Cenvat credit therefore, the assessee can avail Cenvat credit even after three years of purchase.
“Whether the Availment of Cenvat credit taken on inputs is possible after three years of its purchase.”
Decision of the Bench :
The bench held that in Cenvat Credit Rules, 2004 there is no time period prescribed of taking the Cenvat Credit on inputs. Further the case law of M/s SGS India Pvt. Ltd cited by the learned A.R., came up before this Tribunal and the Tribunal held that Cenvat credit can be taken at any time after purchase of the goods , has no relevance to the facts of the present case as in that case the assessee took the credit within one year of the purchase of the inputs and this Tribunal held that the credit is taken within a reasonable time. Therefore it does not mean that if the credit is not taken within one year it is not entitled to take credit. With these terms, I do agree with the findings of the learned Commissioner (Appeals) holding that the respondents are entitled to take credit. Therefore the impugned order has no infirmity and the same is upheld. The appeal filed by the Revenue is dismissed.
From the plain reading of the present judgment it can be inevitably concluded that there is no time limit of taking the Cenvat credit on inputs in Cenvat Credit rules, 2004. Even if the Cenvat Credit is not taken within one year it doesn’t mean that we are not entitled to take credit after one year, it means we can avail cenvat credit even after two or three years of purchase on inputs .