time limit for excise credit

There is no timelimit for the availment of credit

The credit of input or capital goods may be taken as soon as these goods are received in the factory of manufacturer or the premisis of output service provider along with the excise invoice.

If the credit is not availed at that time it donot lapse that credit may be utilised at any time thereafter as per cenvat credit rules 2004

thanks for your quick reply

i just want one more favour ..can you tell me the rule no. for the same..

I think that Tribunal has held that one year as the maximum period on whcih credit can be availed.

The law does not fix any time limit within which credit must be taken. As Mr. Gaurav Gupta has rightly pointed Rule 3 of the Cenvat Credit Rules, 2004 says that the credit may be taken immediately on receipt of the inputs in factory.

However, when there is no time limit prescribed for performance of an act, it must be performed within reasonable period. [Principle of Indian Contract Act applies].

Earlier, when the time limit available to department for issuing notice was six months, 'six month' was considered as the reasonable period. Since the present period of limitation is one year, the 'reasonable period' is also one year.

Tribunal has upheld this view.