Prospective application of CENVAT credit time limit bars denial on pre-commencement invoices and invoice evidence of receipt

A six-month time limit for availing CENVAT credit introduced by notification operated prospectively, so invoices issued before the commencement date were not hit by that restriction. The invoice was treated as the relevant document evidencing receipt of inputs, and denial of credit for alleged absence of further documentary proof was found unsustainable where the invoices themselves recorded receipt. On that basis, the denial of CENVAT credit could not stand and relief followed.

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Issues: Whether the six-month limitation for availing CENVAT credit introduced by Notification No. 21/14 dated 01.09.2014 applied to invoices issued before that date, and whether credit could be denied for want of further documentary evidence when the invoices themselves showed receipt of inputs.

Analysis: The limitation for taking credit was introduced into the statute only from 01.09.2014. The disputed invoices were all dated prior to that date, and the show cause notice itself recorded those invoices. The invoice was treated as the relevant document evidencing receipt of inputs, and the finding that proof of receipt was absent was found to be incorrect. Since the demand proceeded on an factual premise and the invoices predated the first introduction of the limitation, the credit could not be denied on that basis.

Conclusion: The denial of CENVAT credit was unsustainable, and the appellant was entitled to relief.

Final Conclusion: The order in appeal was set aside and the appeal was allowed.

Ratio Decidendi: A time limit for availing CENVAT credit introduced by notification operates prospectively, so invoices issued before the commencement date are not hit by that limitation.

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