Limitation barred denial of Cenvat credit where invoices had no time-filing requirement and extended period was not invokable.

Cenvat credit could not be denied on limitation where the show cause notice relied on the extended period. The Tribunal held that there was no legal requirement for invoices to be filed before the department within a specified time, and the existence of divergent views at the adjudicatory level showed that the matter was not one of suppression or wilful default. On that basis, the extended period was not invokable and the demand denying credit was barred by limitation, in line with earlier coordinate-bench views.

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Issues: Whether the demand denying Cenvat credit was barred by limitation, where the show cause notice invoked the extended period.

Analysis: The appellant confined the challenge to limitation. The Tribunal held that there was no legal requirement for the invoices to be filed before the department within time. It further noted that the adjudicating authority had allowed credit while the revenue had taken a contrary view in appeal, showing divergent views at the adjudicatory level. In those circumstances, the extended period of limitation was held to be not invokable. As the show cause notice itself had been issued by invoking the extended period, the denial of credit was treated as barred by limitation. The Tribunal also noticed earlier coordinate-bench views taking the same approach on limitation.

Conclusion: The demand was barred by limitation and the extended period of limitation was not invokable. The issue was decided in favour of the assessee.

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