Delayed CENVAT credit cannot be denied without an express time limit when substantive eligibility conditions are met.

CENVAT credit of special additional duty on imported inputs and capital goods could not be denied merely because availment was delayed, as Rule 4 of the CENVAT Credit Rules, 2004 requires receipt of goods in the factory but prescribes no outer time limit for taking credit. The clarification on "immediately" did not impose a fixed period, and authorities erred in reading a limitation into the rule. As the credit had been taken and reversed without utilisation and the substantive eligibility conditions were satisfied, restoration of the credit was allowed and the denial set aside.

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Issues: Whether CENVAT credit of special additional duty paid on imported inputs and capital goods could be restored despite delayed availment when the goods had been received in the factory and the credit had not been utilised.

Analysis: Rule 4 of the CENVAT Credit Rules, 2004 requires receipt of inputs or capital goods in the factory before credit can be taken, but it does not prescribe any outer time limit for availment. The clarification issued by the Central Board of Excise & Customs stated that "immediately" does not mean within a fixed short period and that delayed availment cannot by itself justify denial of credit. The authorities below erred in reading a limitation period into the rule, particularly when the credit had been taken and reversed without utilisation.

Conclusion: The appellant was entitled to restoration of the CENVAT credit; the denial of credit was unsustainable and was set aside in favour of the assessee.

Final Conclusion: The appeal succeeded and the credit of Rs. 9,27,776/- was restored.

Ratio Decidendi: In the absence of an express time limit in Rule 4 of the CENVAT Credit Rules, 2004, credit cannot be denied merely because it was taken after a delay, provided the substantive conditions for eligibility are satisfied.

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