Registration-linked Cenvat credit: compliance period for existing units runs from the notification's effective date unless stated otherwise.

An existing unit seeking registration as an input service distributor under Notification No. 27/05 was entitled to Cenvat credit where its application was filed within 30 days of the notification's effective date. The notification operated from 16-6-05, so the compliance period had to be computed from that date; it could not require registration before the notification commenced. The respondent therefore satisfied the notification's conditions, the credit claim was valid, and the departmental challenge failed.

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Issues: Whether an existing unit seeking registration as an input service distributor under Notification No. 27/05 dated 7-6-05 was entitled to claim Cenvat credit when the application for registration was filed within 30 days from 16-6-05, the date on which the notification came into force.

Analysis: The notification was expressly given effect from 16-6-05. The requirement to apply for registration within 30 days could not be read as obliging an existing unit to obtain registration before the notification itself commenced. Such an interpretation would make the time available to existing units unrealistically shorter and would defeat the workable application of the notification. Since the respondent applied for registration within 30 days from the effective date, the conditions of the notification stood satisfied.

Conclusion: The respondent was eligible for the credit and the departmental challenge failed.

Final Conclusion: The order of the Commissioner (Appeals) allowing Cenvat credit was upheld and the departmental appeal was dismissed.

Ratio Decidendi: Where a notification granting registration-linked credit becomes operative from a specified effective date, the period for compliance by existing units is to be computed from that effective date unless the notification clearly provides otherwise.

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