Belated CENVAT credit cannot be denied without an express time limit; delay alone is not enough to refuse the benefit.

CENVAT credit of service tax taken belatedly cannot be denied merely because it was not availed at the earliest opportunity, where no express statutory time limit exists. The Tribunal followed earlier decisions holding that, absent a prescribed limitation, delay by itself does not defeat the credit entitlement. It rejected the Revenue's argument that a reasonable period should be read in by implication, noting that the cited Supreme Court observations caution against importing a limitation where the statute does not provide one. The Board's circular also stated that credit should be taken early, but delay alone is not a ground to refuse the benefit. The denial of credit was therefore unsustainable.

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Issues: Whether CENVAT credit of service tax taken in March 2008 on input services received during the period from 31.12.2006 to February 2008 could be denied on the ground that it was not availed immediately or within a reasonable time.

Analysis: The earlier Tribunal decisions relied upon by the assessee were followed to hold that, in the absence of a specific statutory time limit, credit cannot be denied merely because it was not taken at the earliest opportunity. The reliance placed by Revenue on decisions suggesting a reasonable period was not accepted, because the cited observations of the Supreme Court only state that where no limitation is prescribed, courts should not import one by implication. The Board's clarification in Circular dated 29.08.2000 also stated that although credit may be taken at the earliest opportunity, delay in taking credit does not by itself justify denial of the benefit.

Conclusion: The denial of CENVAT credit was not sustainable, and the assessee was entitled to take the credit even though it was not availed immediately.

Ratio Decidendi: In the absence of an express statutory time limit, CENVAT credit cannot be denied solely because it was taken belatedly, unless a valid legal restriction is shown.

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