2018 (3) TMI 826 - AT - Central Excise

CENVAT credit - duty paying documents - supplementary invoices issued by the service provider - Held that - it cannot be said that prior to 01.04.2011, the appellant was not entitled to avail Cenvat Credit on the strength of supplementary invoices issued by the service provider - the demand confirmed on account of denial of Cenvat Credit on the strength of supplementary invoices is set aside - matter remitted back (for part of the demand) for verification purposes to the Adjudicating Authority is confirmed.

Summary

Issues involved:
1. Denial of Cenvat Credit based on supplementary invoices issued by the service provider.
2. Interpretation of Rule 9(1)(bb) of the Cenvat Credit Rules, 2004.
3. Entitlement to avail Cenvat Credit on supplementary invoices prior to 01.04.2011.
4. Verification of documents by the Adjudicating Authority.

Analysis:

1. The appellant contested the denial of Cenvat Credit by the learned Commissioner (Appeals) based on supplementary invoices issued by the service provider. The Revenue argued that Cenvat Credit on supplementary invoices was not permissible before 01.04.2011. The proceedings were initiated against the appellant, leading to the denial of Cenvat Credit.

2. The appellant argued that Rule 9(1)(bb) of the Cenvat Credit Rules, 2004 allows availing Cenvat Credit on supplementary invoices. The rule does not exclude supplementary invoices as valid documents for claiming credit, provided they contain all necessary particulars as per Rule 4 of the Service Tax Rules, 1994.

3. The Tribunal analyzed Rule 9(1)(bb) and determined that the appellant was entitled to avail Cenvat Credit on supplementary invoices from 01.04.2011 onwards. The rule introduced this provision for claiming credit based on supplementary invoices, emphasizing the absence of fraud, collusion, or misstatement by the service provider.

4. Regarding the verification of documents, the Adjudicating Authority was tasked with verifying the documents for part of the demand, as per the order of the learned Commissioner (Appeals). The Tribunal upheld this decision, affirming the need for proper verification before allowing Cenvat Credit.

5. Ultimately, the Tribunal set aside the demand related to the denial of Cenvat Credit on supplementary invoices and confirmed the order remanding the matter for verification purposes. The appeal was disposed of based on these conclusions, providing clarity on the entitlement to Cenvat Credit on supplementary invoices as per the relevant rules and provisions.