2007 (7) TMI 65 - AT - Central Excise

Cenvat - Issue arises (i) credit taken after 6 month from dates of related invoices (ii) time/date of removal not mention in invoices (iii) inputs received from assessee s sister plant and no debit entry particulars recorded in invoice (iv) BOE particulars not available in invoices - Credit allowed in 3rd and 4th and denied in 1st and 2nd

Summary

Issues:
1. Denial of credit on certain invoices due to delay in claiming credit.
2. Denial of credit on certain invoices due to missing information.
3. Denial of credit on certain invoices from sister plants.
4. Denial of credit on specific items due to minor infractions.
5. Denial of credit on Nickel Square due to missing Bill of Entry particulars.

Analysis:

Issue 1: Denial of credit on certain invoices due to delay:
The appeal involved multiple invoices, including those from Durgapur Chemicals Limited and Bihar Caustic & Chemicals Limited, where credit was denied due to claims made after six months. The advocate acknowledged the denial based on a Supreme Court decision and did not press the appeal. The Tribunal upheld the denial in line with the Supreme Court's decision. Regarding another invoice, where the time and date of removal were missing, the appellants were rightly denied credit as they did not rectify the defects.

Issue 2: Denial of credit on certain invoices due to missing information:
In the case of specific invoices where the inputs were received from sister plants without debit entry particulars initially, the lower appellate authority rejected subsequent evidence of duty payment. However, considering practical measures for steel plants allowed by the Department, the Tribunal set aside the denial and allowed the credit. The penalty imposed was also set aside in this regard.

Issue 3: Denial of credit on specific items due to minor infractions:
The denial of credit on Polyurathene Lining of Rolls Assembly was considered a minor infraction and should not hinder credit allowance. Similarly, the denial of credit on Viton 'O' Ring for being declared as inputs instead of capital goods was overturned based on settled law.

Issue 4: Denial of credit on Nickel Square due to missing Bill of Entry particulars:
The denial of credit on Nickel Square due to missing Bill of Entry particulars was challenged. The invoices were issued by a Public Sector Undertaking and duly authenticated, meeting legal requirements under Rule 57G(3). Consequently, the Tribunal allowed the appeal by setting aside the impugned order.

In conclusion, the Tribunal partly allowed one appeal and fully allowed another, overturning denials of credit based on various grounds such as delays, missing information, minor infractions, and legal requirements. The decisions were made in line with established laws and precedents, ensuring fair treatment in credit claims for the appellants.