The Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that the CENVAT credit cannot be denied to the appellants merely on the ground of clerical error in mentioning the vehicle number.
Before the Tribunal, the appellants contended that there could have been a clerical error in mentioning the truck number and that itself should not deprive them of their CENVAT credit. However, the department rejected their contentions and denied the credit.
After considering the contentions from both the sides, the Tribunal found that there is no sufficient evidence to deprive the appellant of the CENVAT Credit on these two invoices.
It was also noticed that it is not in dispute that receipt of the goods has been accounted for and the amounts have been paid and goods have been taken to recount for the manufacture of the final products. Some of the statements which were relied upon by the Department were negated during cross-examination and the Department has not re-examined them all.
“The only evidence against the appellant in the statement of Shri R.S. Elanjeran, Proprietor of M/s Swastik Insulators, on 31.03.2008 and the fact that one of the truck numbers on which the goods were supposed to have been received was indeed a motorcycle. It was perfectly possible that there was a typographical error in mentioning the vehicle number. As the Department had committed an error in not verifying the vehicle No. AP 07 TF 9777, but had instead verified the vehicle No. AP 07 TT 9777, it is an equally possible human failure that the person preparing the documents to have erred in mentioning the vehicle number. Under these circumstances, I find the assessee cannot be denied of CENVAT Credit on these two invoices” the Tribunal said.
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