2007 (3) TMI 527 - AT - Central Excise

Summary

Issues involved: Admissibility of Cenvat credit on invoices endorsed by unregistered depot of supplier.

Summary:
The case revolved around the admissibility of Cenvat credit based on invoices endorsed by the unregistered depot of the supplier during a specific period. The appellants, engaged in manufacturing lead and zinc concentrates, availed Cenvat credit on invoices issued by M/s. CEAT Limited to their depot, which were then endorsed to the appellant. The adjudicating authority disallowed the credit and imposed a penalty, later reduced by the Commissioner (Appeals).

The appellant argued that Rule 7 of Cenvat Credit Rules, 2002 allows credit based on invoices issued by the manufacturer for clearance of inputs, without the need for recipient details. They contended that since the inputs were duty paid and used in manufacturing, the credit should not be denied.

On the other hand, the respondent representative supported the Commissioner (Appeals) findings, emphasizing that documents for Cenvat credit must be in the name of the recipient of the inputs.

Upon review, it was observed that the invoice was issued by CEAT Limited to their depot, which then endorsed it to the appellant. Rule 7 of Cenvat Credit Rules, 2002 specifies that credit can be taken based on invoices issued by the manufacturer from their factory or depot to the manufacturer availing credit. As the invoice was not in the name of the appellant, and the required documents were not used for claiming credit, the appeal was dismissed.

(Order dictated and pronounced in the open Court)