CENVAT Credit of Excise Duty Allowable on Basis of original Copy of Invoice if there is no Dispute about Receipt of Goods in factory u/r 57G(6) of Central Excise Rules: CESTAT [Read Order]

The Kolkata bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) held that the CENVAT credit of excise duty was allowable based on the original copy of the invoice if there was no dispute about receipts of goods in the factory under rule 57(G)(6) of the Central Excise Rules,1944. 

Tata Motors Limited, the appellant assessee appealed against the order passed by the Commissioner (Appeals) for disallowing the wrongly availed CENVAT credit of excise duty along with penalty and interest. 

Rahul Tangri, the counsel for the assessee contended that the finding in the impugned order was based on piecemeal and incorrect reading of the letter and the letter clearly said that the goods were received in the factory of the assessee under cover the invoices, based on which the credit availed. 

Further submitted that there was no requirement to produce the original copies for defacement, the insistence on the production of the same or denial of the credit on the basis that the assessee did not produce a copy of the invoice, for availing the credit was legally not tenable. 

Also stated that there was no requirement during the relevant period to avail credit only on the copy of the invoice, as evidenced by the provisions of amended Section 52A of the Central Excise Rules. 

P.K. Gosh, the counsel for the department relied on the decisions made by the lower authorities and contended that the denial of the CENVAT credit was on the ground of the submission of photocopies of the invoice by the assessee. Thus the denial was as per the law and liable to be sustained. 

The Bench observed that Rule 57G(6) of the Central Excise Rules always allowed the assessees to avail credit based on the original copy of the invoice if there was no dispute about the receipt of goods in the factory since there was no dispute on the duty paid to character and receipt of goods in the factory.

The two-member bench comprising Ashok Jindal (Judicial) and K.Anpazhakan (Technical) held that the denial of CENVAT credit in the impugned order was not sustainable and allowed the CENVAT credit while allowing the appeal filed by the assessee. 

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