2018 (8) TMI 786 - AT - Central Excise

CENVAT Credit - duty paying invoices - supplementary invoices issued prior to 01.04.2011 - case of Revenue is that before 01.04.2011 there was no provision in Cenvat Credit Rules for availment of Cenvat credit on supplementary invoices - Held that - Rule 9(1) (bb) of Cenvat Credit Rules does not have any retrospective effect. Therefore, in respect of supplementary invoices which were issued before 01.04.2011 there is no restriction on availment of Cenvat Credit - reliance placed in the case of M/s Delphi Automotive Systems (P) LTD. Vs Commissioner of Central Excise, Noida 2013 (12) TMI 156 - CESTAT NEW DELHI - appeal allowed - decided in favor of appellant.

Summary

Issues:
- Admissibility of Cenvat credit on service tax paid through supplementary invoices issued before 01.04.2011.

Analysis:
The appeal before the Appellate Tribunal CESTAT ALLAHABAD arose from an Order-in-Appeal passed by the Commissioner (Appeals) Central Excise, Noida, regarding the admissibility of Cenvat credit on service tax paid through supplementary invoices issued before 01.04.2011. The appellant, engaged in manufacturing Sugar and Molasses, availed Cenvat credit, which was challenged by the Revenue through a show cause notice. The Order-in-Original confirmed the demand raised by the Revenue, leading to the appellant approaching the Tribunal for relief.

During the hearing, the appellant's counsel referred to a previous decision of the Tribunal in the case of M/s Delphi Automotive Systems (P) LTD. Vs Commissioner of Central Excise, Noida, where it was held that the restriction on availing Cenvat credit on supplementary invoices was introduced from 01.04.2011. The appellant argued that since the supplementary invoices in question were issued before this date, there should be no restriction on availing the Cenvat credit. On the other hand, the Revenue supported the impugned order-in-appeal, maintaining its position against the appellant.

Upon considering the arguments presented by both parties and examining the relevant provisions, the Tribunal noted that Rule 9(1)(bb) of the Cenvat Credit Rules does not have any retrospective effect. Consequently, the Tribunal concluded that for supplementary invoices issued before 01.04.2011, there is no restriction on availing Cenvat Credit. Therefore, the impugned order was set aside, and the appeal filed by the appellant was allowed, providing the appellant with the desired relief.

In conclusion, the Tribunal's decision clarified the admissibility of Cenvat credit on service tax paid through supplementary invoices issued before 01.04.2011, emphasizing the absence of retrospective effect in the relevant rule and ruling in favor of the appellant based on the established legal principles and precedents.