Chartered Accountant
Bookmark and Share
click here to subscribe our newsletter
 
 
Corporate News *   CBIC issues draft rules for Customs valuation *  Top Headlines: Threshold for Benami deals, green bond investors, and more *  Govt aims 1-hour clearance for goods at all ports *  Exporters Allowed To Use RoDTEP, RoSCTL Scrips To Pay Customs Duty, Transfer Them; Rules Amended *  Millions of labourers to be affected by brick producers’ strike over hike in GST, coal rates *  Inauguration of ‘kendriya GST parisar’ *  Transporter can seek Release of Conveyance alone, not Goods under GST Act: Madras HC *  GST: Quoting of DIN Mandatory for Responding to Notice, Govt Modifies Portal *  Firms can soon file claims for GST credits of ?400 cr *  CBIC issues modalities for filing transitional credit under GST. *  Mumbai: Man creates 36 fake GST firms, arrested for input tax credit fraud of Rs 23 cr *  Report to restructure Commerce Ministry under study; idea is to set up trade promotion body: Goyal *  Firms can soon file claims for GST credits of ?400 cr *  Gambling Alert! Govt May Levy Up To 28% GST; UP, Bengal Back Move *  EPFO backs raising retirement age to ease pressure on pension funds *  India Moving Up Power Scale, Set to Become Third Largest Economy By 2030 *  Airfares Get Expensive: What Changes for Flyers From Today? *  IRCTC Latest News: Passengers to Pay More For Cancelling Confirmed Rail Tickets Soon. *  IBC prevails over Customs Act, says Supreme Court. *  As GST enters sixth year, a time for evaluation and reassessment *  There’s GST on daily essentials as Centre needs money to buy MLAs: Arvind Kejriwal *  Now, GST on cancellation of confirmed train tickets, hotel bookings *  GST kitty for top States could rise 20% in FY23, says Crisil *  French customs officials seize another cargo vessel over Russia sanctions *  TradeLens builds on Asia momentum with Pakistan Customs deal *  Hike tax on tobacco, reduce affordability & increase revenue: Civil society organizations to GST council *  Bihar: ?10 crore tax evasion on tobacco products detected in raids *  Centre failed on GST, COVID; would it be anti-national? Rajan on Infosys row *  Service Tax not Chargeable on Income Tax TDS portion paid by recipient: CESTAT grants relief to TVS *  Foreign portfolio investors make net investment of Rs 7575cr in Sep so far
Subject News *  Run-up to Budget: Monetary threshold for GST offences may rise to Rs 25 cr *   GST (Tax) E-invoice Must For Businesses With Over Rs 5 Crore Annual Turnover *   Both Central GST and excise duty can be imposed on tobacco, rules Karnataka high court *   CBIC Issues Clarification On Extended Timelines For GST Compliance *   CBIC Issues Clarification On Extended Timelines For GST Compliance *  Budget 2023- 9.6 crore gas connections *  GST: Tamil Nadu Issues Instructions for Assessment and Adjudication Proceedings *  GST: CBIC Extends Last Date for filing of ITC *  GST collection in September surpasses Rs 1.4 lakh crore for straight seventh time *  Dollar smuggling case: Customs chargesheet names M Sivasankar as key conspirator. *  Hike in GST rates fuels inflation *  Assam: CBI arrests GST commissioner in Guwahati *  GST fraud worth ?824cr by 15 insurance Cos detected *  India proposes 15% customs duties on 22 items imported from UK *  Decriminalising certain offences under GST on cards *  Surge in GST collections more due to higher inflation: India Ratings *  MNRE Notifies BCD and Hike in GST Rates as ‘Change in Law’ Events But With a Condition | Mercom India *   Solar projects awarded before customs duty change allowed cost pass-through *  Rajasthan High Court Dismisses Writ Petitions Challenging Levy Of GST On Royalty *   GST revenue in September likely at Rs 1.45 lakh crore *  Govt working on decriminalising certain offences under GST, lower compounding charge *  Building an institution like GST Council takes time, trashing is easy: Sitharaman *  GST collections in Sept may touch ?1.5 lakh crore *  KTR asks Centre to withdraw GST on handlooms *  After Gameskraft, More Online Gaming Startups To Receive GST Tax Claims *  Madras HC: AAR Application Filed Under VAT Does Not Survive After GST Enactment *  Threshold for criminal offences under GST law may be raised *  Bengaluru: Gaming company faces biggest GST notice of Rs 21,000 crore *  CBIC clarifies Classification of Cranes for GST, Customs Duty *  Customs seize gold hidden in bicycle in Kerala airport  

Comments

Print   |    |  Comment

PJ-Case law-2013/14-1602

Whether debit notes issued by the service providers are valid documents for availing cenvat credit?

Case:-  M/s DIAMOND CEMENTS Vs. COMMISSIONER OF CENTRAL EXCISE, BHOPAL
 
Citation:- 2013-TIOL-836-CESTAT-DEL
 
Brief Facts:- The  appellant has taken credit on debit notes. There is no dispute that the debit notes issued by the service providers on the basis of which cenvat credit has been availed, contain the information viz. the service provider's name and address, service tax registration no., nature of the service provided, value of the service, service tax paid, etc and as such, all the information which is required in the invoices is there in the debit notes. The department being of the view that the debit notes are not the valid documents prescribed in Rule 9 of the Cenvat Credit Rules, initiated proceedings for denial of the cenvat credit taken on the basis of debit notes. These proceedings resulted in issue of an order-in-original by the Asstt. Commissioner by which he confirmed cenvat credit demand along with interest and imposed penalty on the appellant under Rule 15 of the Cenvat Credit Rules, 2004. This order of the Asstt. Commissioner was upheld by the Commissioner (Appeals) vide order-in-appeal against which this appeal has been filed.
 
 
Appellant’s contention:- The appellant pleaded that the debit notes issued by the services providers on the basis of which the cenvat credit was taken by the appellant, contained all the information which is required to be mentioned in the invoices, inasmuch as the debit notes contained the service provider's name and address, service tax registration no., nature of the service provided, value of the service, service tax paid, etc. that in view of this, the debit notes have to be treated as valid duty paying documents for availment of cenvat credit, that the Tribunal in a series of decisions in cases of Pharmalab Process Equipments Pvt. Ltd. Vs. CCE, Ahmedabad reported in 2009 (16) STR 94 = (2009-TIOL-2215-CESTAT-AHM); CCE, Salem Vs. M/s. Pallipalayam Spinners (P) Ltd. reported in 2010-TIOL-1723-CESTAT-MAD; Chemplast Sanmar Ltd. Vs. CCE, Salem reported in 2010 (17) STR 253 (Tribunal-Chennai) = (2010-TIOL-180-CESTAT-MAD) and M/s. The Supreme Industries Ltd. Vs. CCE, LTU, Mumbai reported in 2011-TIOL-1213-CESTAT-MUM has held that cenvat credit can be availed on the basis of debit notes if the same contain all the information, which, required to be mentioned in the invoices and that in view of this, the impugned order upholding the cenvat credit demand along with interest and imposition of penalty is not sustainable.
 
 
Respondent’s Contention:- The Respondent defended the impugned order by reiterating the findings of the Commissioner (Appeals) and relied upon the judgement of the Tribunal in the case of Godrej Consumer Products Ltd. reported in 2010 (20) STR 609 (Tribunal-Delhi) = (2010-TIOL-1739- CESTAT-DEL),wherein it was held that debit note is not a valid duty paying documents for taking cenvat credit.
 
 
Reasoning of Judgment:- The Tribunal have carefully considered the submissions from both the sides and perused the records. The only point of dispute in this case is as to whether debit notes on the basis of which cenvat credit has been availed are valid duty paying documents for this purpose. On going through the debit notes placed on record, Tribunal finds that the same contain all the information, which is required to be mentioned in the invoices. The Tribunal also finds that other Benches of the Tribunal in a series of judgements, as mentioned above, have held that debit notes are valid documents for availing cenvat credit, if the same contained all the information which is required to be mentioned in the invoices. Same view has been taken by the Tribunal in cases of Missonpharma Logistics (I) P. Ltd. reported in 2012 (27) STR 60, CCE, Indore Vs. Gwalior Chemical Industries Ltd. reported in 2011 (274) ELT 97 = (2011-TIOL-1635-CESTAT-DEL) and CCE, Nasik Vs. Graphite (I) Ltd. reported in 2006-TIOL- 1531-CESTAT-MUM.Since in this case, the debit notes contained all the required information, the same have to be treated as valid duty paying documents for availing cenvat credit. Though the ld. DR has cited the judgement of the Tribunal in the case of Godrej Consumer Products (supra), the same is a Single Member Judgement and does not consider a series of judgements of the Coordinate Benches where a contrary view has been taken.
 
In view of the above discussion, the impugned order is not sustainable. The same is set aside. The appeal is allowed.
 
 
Decision:- Appeal allowed.
 
Comment:- It is clear from this case that if the debit notes contained all the required information, the same have to be treated as valid duty paying documents for availing cenvat credit.
 
 
 

Department News


Query

 
PRADEEP JAIN, F.C.A.

Head Office : -

Address :
"SUGYAN", H - 29, SHASTRI NAGAR, JODHPUR (RAJ.) - 342003

Phone No. :
0291 - 2439496, 0291 - 3258496

Mobile No. :
09314722236

Fax No. :0291 - 2439496


Branch Office : -

Address:
1008, 10th FLOOR, SUKH SAGAR COMPLEX,
NEAR FORTUNE LANDMARK HOTEL, USMANPURA,
ASHRAM ROAD, AHMEDABAD-380013

Phone No. :
079-32999496, 27560043

Mobile No. :
093777659496, 09377649496

E-mail :pradeep@capradeepjain.com