Denial of CENVAT Credit on Duty Shown in Invoices on ground of Non-disclosure of Genuine Invoices: CESTAT Quashes Order [Read Order]

The Kolkata bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) quashed the order passed by the Commissioner for denying the CENVAT credit on duty shown in invoices on the ground of nondisclosure of genuine invoices. 

Sapphire Papers Mill, the appellant assessee appealed against the order passed by the Commissioner of denial of CENVAT credit was confirmed along with interest and an equal amount of penalty. 

N.K.Chowdhury, the counsel for the assessee contended that the assessee had received the capital goods along with invoices and the payment thereof had been made through A/c Payee Cheques, and the capital goods are installed in their factory and were available during the period for the manufacture of their final product and were also used for the manufacture of their final product. 

Further submitted that the CENVAT credit cannot be denied to the assessee who had paid duty on capital goods installed in their factory. 

J.Chattopadhyay, the counsel for the revenue contended that the supplier/manufacturer of the capital goods, on which the assessee had taken CENVAT credit, was not having a manufacturing facility on their premises and the said capital goods had not been received by the assessee. 

The bench observed that the assessee had availed CENVAT credit on capital goods procured from the supplier/manufacturer against duty-paying documents, who had Central Excise Registration. 

The two-member bench comprising Ashok Jindal (Judicial) and K.Anbazhakan (Technical) held that the CENCAT credit cannot be denied and quashed the order of denial of credit while allowing the appeal filed by the assessee. 

To Read the full text of the Order CLICK HERE

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