2013 (11) TMI 1170 - AT - Central Excise

Denial of cenvat credit Documents submitted are photocopies and not original Waiver of pre-deposit Held that - The appellant had made an application to the Customs Authorities for issue of attested photocopies of the bills of entry on the ground that the original copies of the bills of entry have been lost and in response to that, the concerned Customs Authorities issued attested photocopies of the bills of entry - the bills of entry is in the name of the appellant and receipt of the goods covered by the bills of entry in the appellant s factory is not disputed, and also in view of that fact that the photocopies of the bills of entry attested by the concerned Customs Authorities, it would not be correct to deny the cenvat credit - The appellant have strong prima facie case in their favour - The requirement of pre-deposit of cenvat credit demand, interest thereon and penalty waived till the disposal Stay granted.

Summary

Issues:
Denial of cenvat credit based on attested photocopies of bills of entry.

Analysis:
The appellant availed cenvat credit based on attested photocopies of bills of entry for imported Machinery during 2008-2009 and 2009-2010. The department issued a show cause notice for denial of credit, recovery with interest, and penalty. The Addl. Commissioner denied the credit, confirmed the demand, and imposed a penalty. The Commissioner (Appeals) upheld this decision. The appellant argued that original copies were lost, and attested copies were issued by Customs Authorities. The appellant's receipt of goods was not disputed. The Tribunal noted that the bills of entry were in the appellant's name, and goods were received in their factory. Despite being photocopies, as attested by Customs Authorities due to loss of originals, the Tribunal found no justification to deny cenvat credit. The Tribunal considered the strong prima facie case in favor of the appellant, waived the pre-deposit requirement for hearing the appeal, and stayed the recovery until appeal disposal.

This judgment highlights the importance of substantiating cenvat credit claims with valid documents. Despite being photocopies, attested by Customs Authorities due to loss of originals, the Tribunal acknowledged the appellant's genuine need for cenvat credit. The Tribunal emphasized that the bills of entry were in the appellant's name, and goods were received, supporting the legitimacy of the credit claim. The decision underscores the significance of maintaining accurate documentation for tax credit claims, especially in cases where original documents are lost, and attested copies are obtained from relevant authorities. The Tribunal's ruling prioritized the appellant's genuine circumstances and the established receipt of imported goods, leading to the waiver of pre-deposit requirements and a stay on recovery pending appeal resolution.