CENVAT credit time limit - is it a 'reasonable' restriction?

Section 37(2) (xiiia) was effective from 8-5-2010 & the period in the said case was August to November 2007. At para 27 of the said case Hon'ble High Court mentioned that " no Guidance therefore, can, be had from the clause (xiiia) in the context of discretion of the power of the rule making authority under the delegated legislation." Thus said clause was never guiding factor for Hon'ble High Court because during the relevant period prior to 8-5-2010, there was no such power available to the Government.

It was only w.e.f 8-5-2010, did the Govt had powers to provide for restrictions in Cenvat Credit rules. Yes, Hon'ble High Court has ruled on the basis that provisions of Rule 8 (3A) was not reasonable restriction, thus unconstitutional.

But now whether w.e.f 8-5-2010, this restriction of allowing credit only on the specified document within 6 months of its issue will hold good needs to be tested before Higher Courts. Only then the dust of confusion will settle down finally.

Punit Gupta 11/12/2014