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

Cenvat credit procedural lapse: late return filing alone does not justify denial of credit; tribunal relief possible.
When Cenvat credit is recorded in the assessee's books for the relevant period, nondisclosure in belated ST 3 returns has been held by tribunals to be a procedural lapse that does not automatically preclude credit. The operative issues are the evidentiary burden on the assessee to prove entitlement, the strict treatment of time limit rules by higher authorities, and the need for holistic assessment of documents; Tribunal precedents often permit remedy or remand where substantive eligibility is not disputed.