Retrospective CENVAT credit amendment extended the filing period, allowing credit for invoices within the one-year limit.

CESTAT Bangalore held that substitution of the CENVAT credit time limit from six months to one year by Notification No. 6/2015-CE operated retrospectively, applying Section 38A of the Central Excise Act and the settled rule that a substitution ordinarily takes effect from the original provision unless a contrary intention appears. The amended period was therefore treated as applicable to credit already accrued, and the precedent supporting retrospective operation was followed. On the facts, invoices falling within one year were eligible for credit, while the invoice beyond that period was excluded, and relief was granted only for the eligible invoices.

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Issues: Whether the amendment made by Notification No. 6/2015-CE dated 01/03/2015, substituting the period of six months with one year for availing CENVAT credit, operated retrospectively so as to entitle the appellant to credit on the disputed invoices, and whether the claim was barred only to the extent of the invoice falling beyond the extended period.

Analysis: The time limit for taking CENVAT credit was introduced for the first time from 01/09/2014 with a prescribed period of six months. By Notification No. 6/2015-CE dated 01/03/2015, the period was substituted from six months to one year. Applying Section 38A of the Central Excise Act, 1944 and the settled principle that a substitution ordinarily takes effect retrospectively unless a contrary intention appears, the amended period was treated as applicable to credit already accrued. The reasoning accepted the binding effect of the cited precedent supporting retrospective operation of such substitution and rejected the contention that the amendment was purely prospective. On the facts, all invoices within one year from the amendment date were held eligible, while one invoice beyond that period was not.

Conclusion: The appellant was held entitled to CENVAT credit on the eligible invoices under the extended one-year period, and relief was granted to the extent of Rs. 3,09,964/-, with the remaining invoice amount excluded.

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