10 July 2014
Is there any rule in central excise that credit of goods if not taken within 6 months of the date of invoice in books of account or excise return then credit can not be taken on such goods..?
actually accountant has received invoice in the month of march for june month. so he is refusing to take credit based on above argument. can anyone guide in this regard? because i don't find this type of privision or rule in central excise rules..
Rule 4(1) of Cenvat Credit Rule state that CENVAT may be taken immediately on receipt of inputs in the factory or the premises of service provider. Department has clarified that 'immediately' means as the earliest opportunity when the inputs are received. Howerver, this does not mean that if manufacturer/service provider does not take credit as soon as inputs are received in the factory/premises of srvice provider, he would be denied benefit of CENVAT credit. Such an interpretation is not tenable --- Immeidately doesnot mean within 24 hours. It is not necessary to take credit as soon as inputs are received in the factory. However, manufacturer/service provider shlud take credit at earliest opportunity.- CBE&C circular No. 345/2/2000-TRU dated 29-08-2000 - reiterated in Chapter 5 para 3.6 of the CBE&C's manual.
In fact, the rule uses word 'may be taken immediately. The 'may' cannot be read as 'must'.
In manty cases like Hindustan Motors v CCE (1994 (5) TMI 93 - CEGAT, CALCUTTA) = 1994 (73) ELT 597 (CEGAT) and CCE V Premier Cables (1991 (5) TMI 151 - CEGAT, MADRAS) = 1991(56) ELT 853 (CEGAT), it was held that credit should be take in a reasonable time. In one case, it was held that in absence of any time limit, CENVAT credit can be taken any time - even after 3 or 4 years. - Sail v CCE 2004 (41) RLT 706 (CEGAT) - followed in Steel Authority of India Ltd. v CCE 2001 (2001 (1) TMI 144 - CEGAT, NEW DELHI)= (129) ELT 459 (CEGAT), Super Cassettes v CCE (2004 (6) TMI 374 - CESTAT, NEW DELHI) = (2004) 171 ELT 280 (CEGAT).
In Johnson Matthey Chem India v CCE (2009 (4) TMI 149 - CESTAT, MUMBAI) = (2009) 240 ELT 673 (CESTAT), it has been held that when statute does not prescribed any time limt for any action, no time limit can be imputed into that statute from any other provision. Hence, there is no time limit for taking CENVAT credit - same view in Industrial Cables v CCE (2009 (1) TMI 281 - HIGH COURT OF PUNJAB & HARYANA AT CHANDIGARH)= (2009) 236 ELT 658 (P&H -
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