2015 (6) TMI 911 - AT - Central Excise

CENVAT Credit - duty paying documents - whether the appellant is entitled for the Cenvat credit on the strength of debit note issued by the service provider - Held that - All the particulars as required under Rule 9(2) of Cenvat Credit Rules are undisputedly appearing on the debit note. Therefore the debit note is at par with the documents prescribed under Rule 9(1) of Cenvat Credit Rules, 2004. On going through various judgments relied upon by the Ld. Counsel for the appellant, I find that the ratio of those judgments are squarely applicable in the present case. There is no dispute raised by the department that the service were received and same was accounted for in the books of account of the appellant, therefore, I am of the view that debit note containing all the details as required under the rule 9(2) of Cenvat Credit Rules, 2004 is valid documents for the purpose of taking cenvat credit. - impugned order is set aside - Decided in favour of assessee.

Summary

Issues Involved:
Whether the appellant is entitled to Cenvat credit based on a debit note issued by the service provider.

Analysis:
The appeal was against the rejection of Cenvat credit by the Commissioner of Central Excise (Appeals-II), Mumbai, based on a debit note. The main issue was the validity of claiming Cenvat credit on a debit note. The appellant argued that the debit note contained all the necessary details as per Rule 9(2) of Cenvat Credit Rules, making it a valid document for claiming the credit. The appellant cited several judgments where Cenvat credit on debit notes was allowed. The respondent, however, contended that debit notes were not prescribed documents for Cenvat credit under the rules.

The Tribunal carefully examined the debit note and found that all required particulars under Rule 9(2) of Cenvat Credit Rules were present on it. The Tribunal noted that the debit note met the standards set by Rule 9(1) of Cenvat Credit Rules, 2004. Additionally, the Tribunal considered the judgments referenced by the appellant, stating that the principles in those judgments applied to the current case. It was acknowledged that the services were received and accounted for in the appellant's books. Consequently, the Tribunal concluded that the appellant was indeed entitled to Cenvat credit based on the debit note. Therefore, the impugned order was set aside, and the appeal was allowed.

This judgment highlights the importance of ensuring that documents, even if not specifically prescribed, contain all necessary details as required by the relevant rules to claim Cenvat credit. The decision also underscores the significance of consistency in applying legal principles across similar cases, as demonstrated by the reliance on past judgments where Cenvat credit on debit notes was allowed.