Importer’s invoice valid document for availing credit.

PJ/Case Law/2013-14/2026

Case:-JINDAL STEEL & POWER LTD. VERSUS COMMR. OF C.EX. & SERVICE TAX, RAIPUR

Citation:-2013(298) E.L.T. 447 (Tri.-Del.)

Brief Facts:-This appeal is filed by M/s. Jindal Steel & Power Ltd., against the Order-in-Appeal No. 36/RPR-I/2012, dated. 27 February, 2012 passed by Commissioner, Central Excise & Customs (Appeals-I).

The brief facts of the case are that the appellants had availed the CENVAT credit amounting to Rs. 9,62,092/- on the goods imported by M/s. ABB Ltd., Bangalore vide bills of entry No. 297005, dated 17-11-2006 and 305232, dated 28-11-2006. These goods were supplied to the appellants by ABB Ltd. on the strength of invoice No. 649020250 and 649020251, both dated 29 November, 2006. The Department has denied the CENVAT credit to the appellants on the ground that the bills of entry are in the names of ABB Ltd. and original of which are not available. Accordingly, the show cause notice was issued to the appellants, which was adjudicated against them by the original authority. Appellants challenged the same before the C.C.E. (Appeals), who also rejected their appeal. Appellants filed this appeal against the impugned order.

Appellant Contentions:- The counsel for the appellant submits that they are rightly eligible for credit availment on the strength of importer’s invoice as per Rule 9 and the same should be allowed to them.

Respondent Contentions:-The respondent reiterated the findings of the lower authorities.

Reasoning of Judgment:-Heard both the sides. It is found that the CENVAT credit is denied to the appellants on the ground that the bills of entry are not available in original and are also in the name ABB Ltd. in the absence of which, the appellants are not entitled for CENVAT credit. It is found that under Rule 9, the documents on the basis of which the credit can be allowed are specified. Rule 9(1)(a) of the CENVAT Credit Rules reads as under :-

"Rule 9.Documents and accounts. - (1) The CENVAT credit shall be taken by the manufacturer or the provider of output service or input service distributor, as the case may be, on the basis of any of the following documents, namely :-
(a)        an invoice issued by -
      i.        A manufacturer for clearance of –
                     I.        Inputs or capital goods from his factory or depot or from the premises of the consignment agent of the said manufacturer or from any other premises from where the goods are sold by or on behalf of the said manufacturer;
                    II.        Inputs or capital goods as such;
     ii.        an importer;
    iii.        an importer from his depot or from the premises of the consignment agent of the said imports if the said depot or the premises, as the case may be, is registered in terms of the provisions of Central Excise Rules, 2002;
    iv.        a first stage dealer or a second stage dealer, as the case may be, in terms of the provisions of Central Excise Rules, 2002; or"

It is found from Rule 9(1)(a)(ii) that any invoice issued by importer is admissible documents for CENVAT credit. In the present case, the appellants are having importer's invoices showing the amount of duty on which they are seeking CENVAT credit. Therefore, there is no reason to deny the CENVAT credit to the appellants on the basis of the importer invoices. As regards second ground of denying credit on ground of delay in taking credit, there is no time-frame mentioned in the CENVAT Credit Rules in availing the CENVAT credit. Therefore, there is no reason to reject the CENVAT credit on the ground of time also. Accordingly, the Order-in-Appeal is not sustainable and the appeal is allowed.

Decision:-Appeal allowed.

Comment:-The analogy that is drawn from this case is that invoice issued by the importer is a valid document for the purpose of availing cenvat credit and the credit cannot be denied on the ground that original copy of bill of entry was not present. Moreover, it was also confirmed in this case that no time limit is prescribed in the Cenvat Credit Rules for availing the cenvat credit and it can be availed any time after receipt of goods.

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PJ/Case Law/2013-14/2026

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