CX - Notif. 21/2014-CX(NT) prohibiting manufacturer from taking CENVAT credit after six months from date of issue of invoice does not apply to invoices issued prior to date of notification: CESTAT

the subject time restriction to take credit is imposed w.e.f 1.9.2014 vide Notfn No. 21/2014-NT dated 11.07.2017 which is prospective in nature as it is applicable in respect of credits taken on or after 1.9.2014. Judgement says that time restriction is applicable only for the invoices issued on or after 11.7.2014 and credit can be taken on the invoices issued prior to 11.7.2014 can be taken without any time limit may not be the intention of the provision. In fact it appears that time gap given from the date of notification (11.7.2014) to effective date (1.9.2014) is to provide opportunity to the trade to avail credit on any missed invoices. Further, not having such condition at the time of issue of invoices is no way deprive of any action on the part of the credit taker. Another reason given for allowing credit is that it is suffice if the credit is taken in the books of records even though the same is not reflected in the Cenvat Credit Register. Unless it is shown in the Cenvat Credit Register and also declared in the periodical returns how it was considered as shown in the books of records. If such an analogy is drawn how to recon the relevant date to issue SCN based on the date of receipt of input/input service shown in any book of record or on the date of taking credit in Cenvat Credit Register/ month of credit shown in the periodical returns.

mallikarjun reddy c 27/03/2018