2018 (12) TMI 1236

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....ssued to the respondent stating that the credit has been taken in violation of the 5th proviso to Rule 4(7) of CENVAT Credit Rules 2004 inserted vide Notification No. 21/2014-CE dated 11.07.2014 with effect from 01.09.2014. As per this amendment, manufacturer or provider of output service shall not take CENVAT credit after six months of the date of issue of any of the documents specified in sub-rule (1) of rule 9 of the CENVAT Credit Rules. The show-cause notice sought to deny irregularly availed CENVAT credit and recover the same along with interest and also impose penalties. After following due process of law, the lower authority has confirmed the demand along with interest and appropriated the amount already reversed by the respondent he....

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.... failed to take credit of CENVAT within six months from the date of invoice as required under the law. The fact that the respondent has taken CENVAT credit wrongly has not been disclosed to the department as the ER-1 required only consolidated amounts to be reflected. It is for the assessee to ensure that they have taken credit as per the rules and they have failed to do so. As per the respondent's contentions they have been maintaining ledgers as on the date of audit of the unit and if so, nothing prevented them to produce them before the audit for verification and no such records were produced. After audit, they must have prepared and submitted records to camouflage the fact that they have irregularly availed CENVAT credit. 4. The appell....

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....d document-wise CENVAT credit details to the Range superintendent. In fact, there is no suppression because they have submitted whatever they were required to submit viz., ER-1 returns which do not require details of the CENVAT credit availed invoice wise. The show-cauce notice is, therefore, time barred and should be set aside of this ground alone. 6. I have considered the arguments of both sides and perused Rule 4 of the CENVAT Credit Rules 2004 as amended by Notification No. 21/2014 which required CENVAT credit to be availed within 6 months from the date of issue of the invoice. The department's case is that the respondent has taken credit after a period of six months. The counsel for the respondent argues that they have in fact taken c....