2018 (5) TMI 1515 - AT - Service Tax

CENVAT credit - duty paying invoices - whether the appellant are entitled to avail CENVAT credit of duty paid on capital goods, namely, Forklift Trucks on the strength of Xerox/Photocopies of the invoices? - Held that - it is not in dispute that the original and duplicate copy of the invoices were lost and necessary complaint has been filed with the Police and notices placed in the newspaper. Besides, the Forklift trucks are duly registered with RTO and bear machine number and chasis number. The Revenue does not dispute the receipt and utilization of these capital goods by the appellant in providing the output service - credit allowed - appeal allowed - decided in favor of appellant.

Summary

Issues:
- Admissibility of CENVAT credit on capital goods based on Xerox copies of invoices

Analysis:
The appeal was filed against an order-in-appeal passed by the Commissioner (Appeals) Vadodara-l, where the appellant, engaged in providing various output services, availed CENVAT credit on capital goods amounting to ?7,54,917/- based on photo copies of the invoices. The issue revolved around the admissibility of this credit, as an SCN was issued alleging that credit on photocopies/Xerox copies of invoices was not permissible. The demand was confirmed with interest and penalty, leading to the appeal before the Tribunal.

The appellant argued that they availed credit on duty paid on capital goods, specifically Forklift trucks, from various manufacturers, all registered with the RTO and provided with a Chasis No. and Machine No. They highlighted that original/duplicate copies of invoices were lost in transit, and FIRs were filed with the Police along with newspaper advertisements. The appellant contended that each invoice/document bore unique identifiers, making it impossible to avail credit twice. They also mentioned availing depreciation on these capital goods, certified by a Chartered Accountant. The appellant cited judgments supporting admissibility of CENVAT credit on photocopies of invoices.

The Revenue, represented by the Ld. AR, reiterated the findings of the Ld. Commissioner (Appeals) in rejecting the appellant's appeal. However, the Tribunal, after considering the facts and circumstances of the case, along with legal precedents like the judgment of the Hon'ble High Court in Shivam Electrical Industries case, concluded that the appellant was entitled to avail CENVAT credit on the Xerox copies of the invoices for the Forklift trucks. The Tribunal emphasized that the appellant had received and utilized the capital goods in providing output services, and therefore, there was no reason to deny the credit. As a result, the impugned order was set aside, and the appeal was allowed with any consequential relief as per law.