Relief to Tata Motors: CESTAT quashes Denial of CENVAT Credit of Excise Duty on Ground of Genuine Disclosure of Transporters Copy of Invoice [Read Order]

The Kolkata bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) quashed the denial of CENVAT credit of excise duty on the ground of genuine disclosure of the transporter’s copy of the invoice. The Bench granted relief to Tata Motors Limited by quashing the denial of the credit and also quashing the penalty and interest imposed on them. 

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 the duplicate copy of invoice produced by the assessee clearly indicates the receipt of the goods into the factory and the assessee had rightly availed the credit. 

Also stated that during the material period, there was no requirement of submitting the Transporter copy to avail of the credit and the credit can be availed based on any other valid document such as an original copy or Triplicate copy also. 

P.K.Ghosh, the counsel for the department relied on the decisions made by the lower authorities and contended that the denial of the credit was based on the submission of transporters copy of the invoice by the assessee. Due to the non-submission of the original invoice, the credit was denied and which was sustainable. 

The Bench observed that the CENVAT credit cannot be denied on the ground that the assessee had not produced a Transporters copy of the invoice for availing of the credit and the assessee can avail of the CENVAT credit based on the original copies of the invoice. 

The two-member bench comprising Ashok Jindal (Judicial) and K.Anpazhakan (Technical) quashed the denial of the CENVAT credit of excise duty and allowed the credit to the assessee while allowing the appeal filed by the assessee. 

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