The Ahmedabad bench of the Customs, Excise & Service Tax Appellate Tribunal (CESTAT) has held that the cenvat credit cannot be denied for mere procedural lapse of submitting photocopies of the invoices.
The appellant, DKNV Engineering Pvt Ltd wanted to avail CENVAT Credit. However, the Revenue denied Cenvat credit availed on the strength of Xerox copies of the purchase invoices.
After hearing submissions from both sides, Mr. Ramesh Nair, Member (Judicial) observed that the credit was denied only on the basis that appellant failed to produce original copy of invoices.
“However, there is no dispute as regards the purchase of goods and use thereof in the manufacture of final product. The goods is entered in the purchase accounts and therefore, purchase of goods, receipt and use thereof in the manufacture of final products is not disputed. Merely because the original copy of invoice is not available, it cannot alter the important criteria of availing the credit when it is satisfies other criteria,” the Tribunal said.
Relying on a number of judgments, the Tribunal held that “availment of credit on the strength of photo copies of the invoices is just a procedural lapse and cannot be made the basis to disallow the credit. For this reason, in the absence of any evidence that appellant had not received the goods, credit cannot be denied. Therefore, I am of the view that reasons for denial of credit is not sustainable.”
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