2012 (4) TMI 62 - AT - Service Tax

Stay petition - Cenvat credit - During the course of audit of the records of the assessee, it was noticed that the appellants had taken Cenvat credit of Rs.1,45,245/-against debit notes issued by Shri Ganpat Pal Onkarlal Agarwal & Co. for clearing and forwarding charges as also loading and unloading charges at Railway Station - The Counsel for the Appellant submits that though the document is titled as Debit Note the said document contains all relevant details as specified in Rule 9(2) of the Cenvat Credit Rules, 2004 and therefore there is no reason to deny the credit - Appeal is allowed

Summary

Issues:
1. Waiver of pre-deposit requirement for dues arising from the impugned order.
2. Validity of availing Cenvat credit based on debit notes.
3. Interpretation of Rule 9(1) of Cenvat Credit Rules, 2004 regarding the documents eligible for taking credit.

Analysis:
1. The Tribunal found the matter to be on a short point already decided in favor of the appellant, waiving the pre-deposit requirement for dues and proceeding with the final hearing and disposal of the appeal.

2. The appellants, engaged in manufacturing printing and writing paper, availed Cenvat credit based on debit notes issued by a specific party for clearing and forwarding charges. The Revenue contended that debit notes are not specified documents for availing credit, leading to a Show-Cause Notice for recovery of the amount with interest and penalties. The appellant argued that the debit notes contained all necessary details as per Rule 9(2) of the Cenvat Credit Rules, citing relevant Tribunal decisions in support.

3. The Revenue's representative argued that only proper invoices meeting the requirements of Rule 9(1) of the Cenvat Credit Rules should be considered as eligible documents for availing credit. Upon review of the cited Tribunal decisions and examination of the debit notes, the Tribunal concluded that the documents provided by the appellants contained the essential particulars, leading to the allowance of the appeal by setting aside the impugned order.

Conclusion:
The Tribunal disposed of both the stay petition and the appeal by waiving the pre-deposit requirement and allowing the appeal in favor of the appellants based on the adequacy of the documents submitted for availing Cenvat credit, as per the established precedents and provisions of the Cenvat Credit Rules, 2004.