Cenvat credit on job-worker returns cannot be denied solely because the extension request was filed after 60 days.

Credit could not be denied merely because goods sent to a job worker were returned after 60 days and the request for extension was not filed before that period expired. Rule 57F(4) of the Central Excise Rules, 1944 allowed return of goods within 60 days or within such extended period as the Assistant Commissioner permitted, and it did not require the extension application to be made before expiry of 60 days. As the inputs had in fact been received back, the timing objection had no substantive basis and denial of credit was unsustainable.

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Issues: Whether credit could be denied on the ground that goods sent to a job worker were returned after 60 days and the application for extension was not filed before expiry of that period.

Analysis: Rule 57F(4) of the Central Excise Rules, 1944 permitted return of goods within 60 days or such extended period as the Assistant Commissioner might allow. The rule did not contain any stipulation that an application for extension must be filed before the expiry of 60 days. The inputs had in fact been received back, and there was no substantive basis to deny the credit merely because the return was belated.

Conclusion: The objection based on the timing of the extension application was rejected and the denial of credit was unsustainable.

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