TaxTMI 
TaxTMI 
2010 (1) TMI 818
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....ly recount the facts, the appellants were engaged in the manufacture of Alloy Steel/Non-Alloy Steel, Steel Wires, Galvanized Wires, Standard Wired falling under Chapter 72 and 73 of the Central Excise Tariff Act, 1985. The appellants availed Cenvat credit of Services Tax of Rs. 9,49,578/- during the periods from March 2007 to December 2007 on the strength of documents which indicated that credit was availed in irregular availment of Cenvat credit and contravened the provisions of Rule 3(1) of the Cenvat Credit Rules, 2004. 3. Therefore show cause notices were issued to the appellants seeking explanation as to why - (i) cenvat credit totally amounting to Rs. 9,49,578/- should not be demanded and recov....
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.... in terms of Rule 4(1) of the Cenvat Credit Rules, 2004; the said term 'immediately' would mean within a reasonable period of time; the reasonable period for the purpose of availing credit of service tax paid on input was one year. Therefore the finding of the original adjudicating authority was erroneous and contrary to law; (iii) the appellants submitted that Rule 4(1) of the Cenvat Credit Rules, 2004 states that the credit of duty paid on inputs could be taken immediately; however the term immediately did not appear under Rule 4(7) of the Cenvat Credit Rules, 2004; Rule 4(7) of the said rules was the rule which was applicable for purpose of availing credit of service tax paid on input services; further the Rule 4(7) provid....
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....ted that the original adjudicating authority had sought to deny such credit on the grounds that the credit was taken only after one year after the date of availment of the services. The original adjudicating authority had taken this view based on reading of Rule 4(1) of the Cenvat Credit Rules, 2004. The appellant pointed out that first of all the Cenvat Credit Rules, 2004 do not provide for any time limit for availment of Cenvat credit but even if for a moment it is accepted without conceding that it must be taken immediately, in view of the word "immediately" appearing in Rule 4(1) of the Cenvat Credit Rules, 2004, this can be taken only to apply in any extreme eventuality to inputs and not input services. 7. In this connection at....
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....ailment of Cenvat Credit by the appellant after a period of one year. The original adjudicating authority had denied the Cenvat Credit on the input services on the grounds that they were not availed immediately as required by the Rule 4(1) of the Cenvat Credit Rules, 2004. I have carefully gone through the scheme of the Cenvat Credit Rules, 2004 and I find that the said Rule does not stipulate any time period for availment of Cenvat Credit. The appellant have rightly argued that in the case of input services, Rule 4(7) of the Cenvat Credit Rule, 2004 would apply and not Rule 4(1). The extracts of Rule 4(7) which are relevant in this case are reproduced below :- "The Cenvat Credit in respect of input services shall be allowed; on or after....