Extended limitation for CENVAT credit denial failed where Revenue views were divergent and similar credits had been allowed.

CENVAT credit denial was found time-barred because the show cause notice invoked the extended limitation period despite divergent Revenue views on credit availability. The Tribunal noted that the relevant period pre-dated Notification No. 02/14-CE (N.T.) dated 20.01.2014, and that similarly placed assessees had been allowed credit while the Revenue itself had appealed those orders. On that basis, the extended period was held unsustainable, and the credit denial failed on limitation.

---

---

Issues: Whether denial of credit was barred by limitation when the show cause notice was issued by invoking the extended period despite divergent views of the Revenue on the availability of credit.

Analysis: The relevant period preceded the amendment brought in by Notification No. 02/14-CE (N.T.) dated 20.01.2014. The Tribunal noted that similarly placed assessees had been allowed credit and that the Revenue itself had filed appeals against such orders, showing the existence of divergent views on the issue. In such circumstances, invocation of the extended period of limitation was held to be unsustainable.

Conclusion: The denial of credit was held to be barred by limitation and the assessee succeeded.

---