CESTAT, CHENNAI BENCH
Central Bank of India
Commissioner of Central Excise & Service Tax
FINAL ORDER NO. 886 OF 2012
STAY ORDER NO. 755 OF 2012
APPEAL NOS. ST/S/303 OF 2012
AND ST/394 OF 2012
DATE OR PRONOUNCEMENT – AUGUST 13, 2012
1. Heard both sides.
2. The issue involved in the instant appeal falls within a narrow compass. Therefore, I take up the appeal along with stay petition for final disposal with the consent of both sides.
3. The appellants took Cenvat credit in the year 2009 for the period from October 2004 to March 2009. By a show cause notice, as the Cenvat credit has not been taken within a reasonable time period of one year, proposed to levy penalty and interest. Both the lower authorities confirmed the demand by denying the Cenvat Credit and imposed interest and penalty. Aggrieved by this order, the appellants filed this appeal.
4. Considering the submissions made by both sides, no where in the Central Excise Act as well as in the Cenvat Credit Rules not prescribed any period in which credit has to be taken. Although it is mentioned in the Cenvat Credit Rules that assessee can take the credit immediately, but there is no prescribed time limit neither in the Cenvat Credit Rules nor in the Central Excise Act, therefore, after waiving of the requirement of pre-deposit, I have taken up appeal itself for final disposal.
5. The observation made by both the lower authorities that credit is to be taken within a period of one year is totally incorrect and unacceptable. In view of this observation, impugned order is set aside and the appeal is allowed with consequential relief if any. Stay application also disposed off in the above terms.