Cenvat credit

[Vasudev Mehta]

Assesse was suffering from financial crunches and could not file ST-3 returns on time and hence filed ST-3 returns belatedly. However, they also had not declared some amount in ST-3 returns. Some portion of cenvat credit was not taken in ST-3 returns due to inadvertent mistake of accountant and since the returns were filed late I. E. After 2 years, principal commissioner has denied cenvat credit on the ground that it has been availed after a period of 1 year. However it is not the case since only the returns are filed late however cenvat credit pertains to that period only. We have various case laws that not mentioning cenvat credit is mere procedural lapse and have case law of baba auto link wherein the cenvat credit cannot be denied merely on the ground that the returns were filed late. Is it worth going to cestat and can we aregue that there was no intention to evade tax? Can the experts enlighten me on this and is there any more case laws in favour of assesse

AI Summary

Debate Over Late ST-3 Filing and Omitted Cenvat Credit: Procedural Lapse or Strict Rule Violation? An individual facing financial difficulties filed their ST-3 returns late and omitted some Cenvat credit due to an accountant's error. The principal commissioner denied the credit, citing a rule that credit must be availed within a year. The individual argues this is a procedural lapse, supported by case laws suggesting late filing should not negate credit eligibility. Experts have mixed opinions, with some citing strict Supreme Court views on time bars, while others argue non-disclosure in returns is merely procedural. The decision to appeal to CESTAT depends on various factors, including the financial implications.