Cenvat credit time limit under Rule 4(7) barred belated input credit and sustained tax demand, interest, and penalties.

Cenvat credit had to be taken within the one-year period prescribed under Rule 4(7) of the Cenvat Credit Rules, 2004; credit claimed after that limit was inadmissible and could not be used to discharge service tax liability. The record also showed non-payment until audit and delayed return filing, which supported the levy of interest and penalties. On that basis, the demand of service tax, interest, and penalties was sustained and the appeal failed.

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Issues: Whether Cenvat credit could be availed after expiry of the prescribed period under the Cenvat Credit Rules, 2004, and whether the impugned demand, interest, and penalties could be sustained.

Analysis: The dispute centred on the appellant's claim to utilise unutilized Cenvat credit and to take further credit on input-service invoices after a delay far beyond the prescribed one-year period. The prescribed limitation under Rule 4(7) of the Cenvat Credit Rules, 2004 was treated as mandatory, and credit taken beyond that period was held inadmissible. On that footing, the amount claimed belatedly could not be used to discharge the service tax liability. The record also supported the findings of non-payment till audit and belated filing of return, justifying the levy of interest and penal consequences.

Conclusion: The belatedly availed Cenvat credit was not admissible, and the demand of service tax, interest, and penalties was upheld. The appeal failed.

Ratio Decidendi: Cenvat credit must be taken within the period prescribed by Rule 4(7) of the Cenvat Credit Rules, 2004, and credit claimed beyond that limitation is barred and cannot be used to offset tax liability.

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