2018 (2) TMI 793 - AT - Central Excise

CENVAT credit - denial on the ground that the CENVAT documents have discrepancy and some information is not appearing on the bills/challan - Held that - only due to reason some information not appearing in the invoices/challan CENVAT credit cannot be denied - There is no hard and fast rule that unless all the information available on the document such as bill, challan etc. then only credit can be allowed. Matter remanded to the Adjudicating Authority for passing a fresh order after consideration the above aspects without going into the small discrepancies pointed out in the show-cause notice and adjudication order in the cenvatable documents - appeal allowed by way of remand.

Summary

Issues:
Denial of CENVAT credit based on discrepancies in documents.

Analysis:
The Revenue denied CENVAT credit citing reasons like documents not in the appellant's name, lack of Service Tax payment details for transport services, cash memo instead of a bill for service provision, handwritten particulars not acceptable, and absence of Service Tax registration and particulars on invoices. The appellant's counsel argued that despite minor discrepancies, the conditions for availing CENVAT credit were met as the services were received and used with paid Service Tax. The counsel emphasized that the demand was time-barred due to regular ER-I return filings, citing various judgments in support.

Analysis:
The Appellate Tribunal noted that denial of CENVAT credit solely based on document discrepancies was unjustified. Emphasizing the key requirement of services being received, used in manufacturing, and having paid Service Tax, the Tribunal highlighted that credit eligibility should not hinge on document perfection. Consequently, the impugned order was set aside, and the matter remanded for fresh adjudication, directing the Adjudicating Authority to consider service receipt and usage without fixating on minor document flaws. The appellant was instructed to provide additional corroborative records, and the appeal was allowed for remand.

This judgment underscores the significance of actual service receipt and utilization for CENVAT credit eligibility, prioritizing substance over formality in document scrutiny. The Tribunal's decision to remand the case highlights the importance of focusing on essential criteria rather than minor discrepancies, ensuring fair consideration of credit claims.