Appeal allowed: Denial of credit time-barred; emphasize consistency & fairness in Revenue's views.

The appeal was allowed as the denial of credit was deemed time-barred due to the extended limitation period for issuing the show cause notice not applying. The Tribunal emphasized the need for consistency in Revenue's views on credit entitlement under specific notifications and adherence to limitation periods for procedural fairness.

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Issues: Denial of credit based on Notification No.02/14-CE (N.T.) dt.20.1.2014 and extended period of limitation for issuing show cause notice.

Denial of Credit based on Notification No.02/14-CE (N.T.) dt.20.1.2014:
The appellant, located in Jammu & Kashmir, availed exemption under Notification No.01/10-CE dt.6.2.2010 but faced credit denial for duty paid on inputs during 01.10.2012 to 19.01.2014. The Revenue contended that during this period, credit against inputs issued by units availing exemption was not allowed until Notification No.02/14-CE (N.T.) dt.20.1.2014 amended the situation. The appellant challenged the denial, citing a case where similar credit was allowed to another assessee. The Revenue argued based on the Commissioner (Appeals) findings and appeals filed against similarly placed assessees in Jammu & Kashmir.

Extended Period of Limitation for Issuing Show Cause Notice:
The show cause notice was issued on 23.10.2017, invoking the extended period of limitation. The appellant's counsel highlighted the period involved (01.10.2012 to 19.01.2014) and referenced a case supporting credit entitlement. The Tribunal noted divergent views within the Revenue, evident from appeals filed against similar cases. Given the conflicting positions, the Tribunal held that the extended limitation period could not apply. Consequently, the denial of credit was deemed time-barred, leading to setting aside the impugned order and allowing the appeal with any consequential relief.

This judgment emphasizes the importance of consistency in Revenue's views on issues affecting assessees, particularly regarding credit entitlement under specific notifications. It also underscores the significance of adhering to limitation periods for issuing show cause notices to maintain procedural fairness and prevent arbitrary denials of rights to assessees.

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