2015 (5) TMI 980 - AT - Central Excise

Availability of Cenvat credit - Cargo Handling Services - Commissioner (Appeals) did not examine the entire IWBs and in the absence of the same, it was not possible for him to judge the availability of entire credit - Held that - only grievance is examination of the entire bunch of photocopies of IWBs. They are not aggrieved or doubting the availability of all the certificates issued by CCI covering the entire transactions. If that be so, I do not consider any infirmity in the views of Commissioner (Appeals). Admittedly M/s. Container Corporation of India would issue the certificates based upon the IWBs, issued by them and as long as such certificates cover the services in question, credit would be available - no justifiable reasons to interfere in the impugned order of Commissioner (Appeals) - Decided against Revenue.

Summary

Issues:
Availability of Cenvat credit for service tax paid by Container Corporation of India based on photocopies of inland weigh bills (IWBs) and certificates issued by CCI.

Analysis:
The dispute in the appeal revolves around the availability of Cenvat credit for service tax paid by Container Corporation of India (CCI) for Cargo Handling Services provided to the appellant. CCI raised inland weigh bills for the services, providing original copies to railways and keeping photocopies. The appellant availed credit based on CCI certificates and photocopies of IWBs. The Revenue challenged this, alleging that original IWBs were not produced, leading to proceedings and an order by the adjudicating authority.

The Commissioner (Appeals) accepted the appeal filed by the respondent, acknowledging the validity of CCI certificates as proper documents for credit availment. The Revenue's grievance was the lack of examination of all IWBs, arguing that without reviewing all documents, credit availability couldn't be determined. However, the respondent's advocate contended that as long as certificates were issued by CCI, credit should be allowed. The advocate clarified that photocopies of IWBs were provided as samples to validate CCI's certificates.

The Tribunal found no fault with the Commissioner (Appeals)' decision, noting that the Revenue's concern was limited to the examination of photocopies of IWBs, not the issuance of certificates by CCI. As long as CCI issued certificates covering the services, credit should be granted. The Tribunal emphasized that the certificates were based on IWBs provided by CCI, and as long as the services were covered, credit was justified. Consequently, the Tribunal rejected the Revenue's appeal, affirming the Commissioner (Appeals)' order.

In conclusion, the Tribunal upheld the Commissioner (Appeals)' decision, emphasizing the sufficiency of CCI certificates for availing Cenvat credit. The judgment clarified that as long as certificates corresponded to services provided, credit eligibility was established, dismissing the Revenue's appeal.