CA Practice
39 Points
Posted on 12 February 2013
Your specific query has been a subject matter of various erstwhile litigations. While judgments exist both in your favour as well as against, you may consider taking a position to avail CENVAT credit for the period prior to registration as well.
Although you can expect the department to stir up a litigation on this account, you could defend your position on various grounds (along with appropriate backing of judicial precedents), some of which are :
1) Other cases have specifically
1) registration is a procedural lapse and a substative benefit of CENVAT credit cannot be denied for a procedural lapse of non-registration;
2) Separate penal conseqences(section 77) are enshrined under the Finance Act 1994 failure to obtain registration is treated as an independent procedural non‑compliance, for which a commensurate penalty has already been prescribed under the Act.,
It is pertinent to note that the position stated above would normally attract litigation although one could hope for a favourable order at the CESTAT level.
Saransh S
HM Giriya & Co (Bangalore)
e-mail: saransh.giriya @ gmail.com