Cenvat Limitation Case

This ruling is a strong reaffirmation of a foundational principle in indirect tax law, extended limitation is an exception, not the rule.

The Tribunal decisively held that mere ineligibility of credit or procedural lapse cannot justify invocation of the extended period, unless accompanied by positive evidence of intent to evade tax.

Crucially, where the assessee is:

• Filing regular returns, 

• Subject to departmental audits, and 

• Engaging in documented correspondence with authorities, 

the allegation of suppression collapses.

The decision also reinforces a critical procedural discipline:

Once a demand is held to be time-barred, adjudication on merits becomes legally impermissible.