CENVAT CREDIT

[BHARAT COKING COAL LIMITED]

THE ASSESSEE COMPANY IS ENGAGED IN EXTRACTION OF COAL ON WHICH EXCISE DUTY WAS IMPLEMENTED FROM MAR'11 FOR THE FIRST TIME. HOWEVER THE REGISTRATION AS INPUT SERVICE DISTRIBUTOR WAS TAKEN IN NOV'13. SOMEHOW THE COMPANY DID NOT PASS A HUGE AMOUNT OF CENVAT CREDIT ON INPUT SERVICES (MAINLY ON CISF SERVICES) FOR THE PERIOD UPTO NOV'13. IN THE MEAN TIME A NOTIFICATION CAME IN SEP'14 RESTRICTING THE PERIOD OF CENVAT CREDIT ON INPUT SERVICES UTO 6 MONTHS & SUBSEQUENTLY WAS RAISED TO 1 YEAR.

NOW CAN WE TAKE THE CREDIT TODAY FOR THE PERIOD MAR'11 TO OCT'13 ON THE PLEA THAT THE TIME PERIOD IS ONLY APPLICABLE ON INVOICES ISSUED AFTER 6 MONTHS/1 YEAR. A HUGE STAKE OF THE COMPANY IS INVOLVED IN THIS. KINDLY GIVE YOUR VALUD SUGGESTION.

REGARDS

CA C.S. CHAWLA

AI Summary

Time-bar on Cenvat credit claims may be challenged after exhausting departmental remedies and by writ petition.
Time-bar on Cenvat credit claims arises when notifications limit credit to invoices within prescribed retrospective periods; the advised course is to exhaust departmental remedies by applying for administrative permission or a special one time order, secure formal rejection if refused, and thereafter pursue appeals to the Commissioner (Appeals) and, if necessary, challenge the denial through writ proceedings to contest the application of the limitation.