Cenvat credit limitation rejected where the rules imposed no one-year time bar for taking credit.

Cenvat credit could not be denied merely because it was taken after one year, as the excise law and Cenvat Credit Rules did not prescribe any limitation period for availment of credit. The view that credit must necessarily be claimed within one year was unsupported by the statutory framework and was therefore incorrect. The denial of credit on the ground of delay was set aside, and the assessee succeeded.

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Issues: Whether Cenvat credit can be denied on the ground that it was taken after one year from the relevant period.

Analysis: The relevant excise law and the Cenvat Credit Rules did not prescribe any limitation period within which credit had to be taken. The view that credit must necessarily be availed within one year was held to be unsupported by the statutory framework and therefore incorrect.

Conclusion: The denial of Cenvat credit on the ground of delay was set aside and the appeal was allowed in favour of the assessee.

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