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2017 (9) TMI 259 - AT - Service TaxCENVAT credit - duty paying invoices - Pro-forma Invoice - Rule 9 of the CCR, 2004 - Held that - proforma Invoice is not a prescribed document for allowing Cenvat credit. Therefore, Cenvat credit on the said capital goods is not admissible to the Appellant - both authorities below has not extended the benefit of discharging 25% of the penalty imposed subject to fulfilment of the conditions laid down under the relevant provisions, namely, Section 78 of the Finance Act, 1994, read with Rule 15 of the CCR, 2004. Accordingly, the Appellant could avail the benefit of discharging 25% of the penalty imposed subject to fulfilment of the conditions laid down under the aforesaid provisions - appeal allowed - decided partly in fvaor of appellant.
Issues: Admissibility of Cenvat credit based on a proforma invoice, Penalty imposition, Benefit of discharging penalty
In this judgment by the Appellate Tribunal CESTAT AHMEDABAD, the appeal was filed against an Order-in-Original (OIA) passed by the Commissioner (Appeals) of Central Excise, Rajkot. The appellant, a provider of 'Mining Service,' availed Cenvat credit on capital goods, specifically a 'Front End Loader,' based on a pro-forma invoice issued by M/s. GMMCO Limited, Ahmedabad. The Revenue contended that the Cenvat credit on the pro-forma invoice was inadmissible as it is not a prescribed document under Rule 9 of the CCR, 2004. The Tribunal found merit in this argument, stating that the pro-forma invoice is not a prescribed document for allowing Cenvat credit, thus ruling that the credit on the capital goods was not admissible to the Appellant. However, the Tribunal noted that both lower authorities had not extended the benefit of discharging 25% of the penalty imposed, subject to fulfilling the conditions under Section 78 of the Finance Act, 1994, read with Rule 15 of the CCR, 2004. Therefore, the Tribunal allowed the Appellant to avail the benefit of discharging 25% of the penalty imposed upon meeting the specified conditions. The appeal was disposed of on these terms. The judgment highlights the importance of adhering to prescribed documents for availing Cenvat credit and the possibility of benefiting from penalty reduction under specific provisions, emphasizing compliance with relevant legal requirements in taxation matters.
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