Six Months time for taking CENVAT Credit - Applicable for invoices issued prior to 31.08.2014?
AS per the amendment to the CENVAT Credit Rules by Notification No. 21/2014-CENT dated 11.07.2014, after 1.9.2014, CENVAT Credit cannot be taken after six months of the date of issue of invoices/documents.
Now the question is; will this rule apply to invoices issued prior to 1.9.2014 or after?
This question was raised recently in the RAC meeting of Chennai Central Excise Zone.
Commissioner, Service Tax observed that the CENVAT credit on which credit has not been taken earlier, should have been taken during the interim period i.e., 11.07.2014 to 30.08.2014 and ample time was provided to the assesses for taking such credit.
Commissioner, LTU also endorsed the above view and informed that there is no time limit to take credit on invoices which was issued before 01.09.2014. This limitation would apply only to those invoices that are issued on or after 01.09.2014.
Joint Commissioner (CCO) brought to the notice of the committee that the above notification no 21/2014 CE (NT) dated 11.07.2014 does not provide any relaxation for such instances and sufficient time from 11.07.2014 to 30.08.2014 has been provided for taking credit of such old invoices in the notification itself.
Chief Commissioner clarified that from 01.09.2014, the said Rule provided for a period 6 months from the date of invoice for taking credit. The Rule read strictly and in isolation would imply that (on) an invoice issued, say on 1.1.2014, credit of duty paid on the invoice cannot be availed. But whether the benefit can be denied in a case such as this where the right to avail credit had already vested denied at a later date by virtue of the amendment, the matter will be taken up with the Board for clarification .
Will the Board give a clarification before the matter reaches the Supreme Court?