Extended limitation and cenvat credit denial challenged as substantial questions of law in tax appeal

The Gujarat High Court recorded substantial questions of law on whether the Tribunal was correct in applying the extended period of limitation, whether the finding of lack of reasonable care under rule 7(2) of the Cenvat Credit Rules, 2002 was sustainable, and whether denial of cenvat credit with the related liabilities was valid. The tax appeal was admitted for consideration on those questions of law and was directed to be heard with connected appeals.

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Issues: Whether the Tribunal was right in applying the extended period of limitation, whether the finding regarding lack of reasonable care under rule 7(2) of the Cenvat Credit Rules, 2002 was sustainable, and whether denial of cenvat credit together with the related liabilities was valid.

Outcome: The tax appeal was admitted for consideration of the substantial questions of law and directed to be heard with connected appeals.

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