Cenvat Credit admissible on debit notes, freight certificates etc – if containing all the details required under Rule 9 (2) of CCR, 2004.

PJ/Case Laws/2010-11/1096

Case: CCE, SALEM Vs M/s PALLIPALAYAM SPINNERS (P) LTD

Citation: 2010-TIOL-1723-CESTAT-MAD

Issue:-Cenvat Credit admissible on debit notes, freight certificates etc – if containing all the details required under Rule 9 (2) of CCR, 2004.

Brief Facts:- The extension of credit of Rs.1,16,634/- granted to the assessees, who are manufacturers of Polyester and Viscose Yarn etc. Credit was sought to be denied on the ground that the documents such as Debit Notes, Freight Certificates etc., were not prescribed documents for the purpose of taking credit. Credit was disallowed and penalty was imposed by the Adjudicating Authority.

The Commissioner (Appeals) upheld the denial of only Rs. 2,515/- on the ground that the documents on the strength of which this amount was taken was not addressed to the assessees. The Commissioner, however, extended the credit of the amount of Rs.1,16,634/-, on the ground that the documents on the basis of which credit was taken contained all the requisite particulars for the purpose of extending the credit. He reduced the penalty on the assessees to Rs.2000/-. Hence Revenue has filed this appeal.

Reasoning of Judgment:- The Tribunal found no reason to interfere with the impugned order. For this the Tribunal relied upon the decision in the case of Pharmalab Process Equipments Pvt. Ltd. Vs. CCE, Ahmedabad [2009 (242) ELT 467 (Tri.-Ahmd.)] holding that once the details required under Rule 9(2) of the Cenvat Credit Rules, 2004, are shown in the documents such as debit notes on the strength of which the assessees took credit, there was no ground for denial of substantive right to credit.

The same view has been taken by the Tribunal in the assessee's own case as seen from Final Order dt. 21.04.10 and Final Order No. dt. 24.06.10. In those cases, the issue was remanded for the purpose of examining whether the debit notes contained all the requisite particulars for the purpose of availment of credit. However, this case does not warrant any remand, for the reason that it is an admitted position that all the details required under Rule 9 (2) of the CCR,2004, were contained in the documents such as debit notes etc., on the strength of which the assessees have taken the credit.

The Tribunal therefore, upheld the impugned order in so far as it relates to extending the credit of Rs. 1,16,634/- and reducing the penalty to Rs.2,000/- .

Decision:- Appeal rejected.

************

Comments

PJ/Case Laws/2010-11/1096

Post a Comment

Query