2021 (9) TMI 970 - AT - Central Excise

CENVAT Credit - duty paying documents - credit on the basis of supplementary invoices issued by the Coal Companies - issue pending before Supreme Court - HELD THAT - The issue involved herein is no more res-integra and is decided in the case of M/S. ULTRATECH CEMENT LTD. VERSUS C.C.E., RAIPUR 2018 (8) TMI 236 - CESTAT NEW DELHI where it was held that the connected matters are pending adjudication before the Hon ble Apex Court, issue being already sub-judiced the element of confusion cannot be ruled out. Appeal allowed - decided in favor of appellant.

Summary

Issues:
Entitlement of the appellant to avail Cenvat credit on the basis of supplementary invoices issued by Coal Companies; Applicability of Rule 9 (1) (b) of CCR.

Entitlement to Cenvat Credit on Supplementary Invoices:
The appellant, a manufacturer of various products, availed Cenvat credit on inputs, capital goods, and input services under the Cenvat Credit Rules, 2004. The dispute arose when the Preventive Branch observed that the appellant had availed Cenvat Credit based on Supplementary Invoices from subsidiary companies of Coal India Ltd., specifically M/s. South Eastern Coal Limited (M/s. SECL), for differential Central Excise duty paid against considerations like royalty, Stowing Excise Duty, Forest CESS, Terminal Tax, and other taxes. The Department issued a Show Cause Notice proposing recovery of an amount alleged to have been wrongly taken by the appellant. The initial proposal was confirmed, and subsequent appeals were rejected, leading to the appeal before the Tribunal.

Legal Precedents and Arguments:
During the hearing, the appellant's counsel cited various decisions to support the claim that the issue in question had been settled in favor of the appellant in previous cases. The Department, however, argued that the facts of the present matter differed from the cited decisions and emphasized Rule 9 (1) (b) of CCR, stating that Cenvat Credit on supplementary invoices is not admissible under the said rule.

Tribunal's Analysis and Decision:
After considering the arguments, case law, and facts presented, the Tribunal observed that the issue revolved around the appellant's entitlement to Cenvat credit based on supplementary invoices from Coal Companies. The Tribunal noted that the issue had been decided in favor of the appellant in previous cases, as evidenced by the decisions cited during the proceedings. The Tribunal specifically referenced decisions involving South Eastern Coalfields Ltd. and other similar cases where the issue had been addressed. Based on the precedents and lack of fraud or suppression on the appellant's part, the Tribunal allowed the appeal, setting aside the order under challenge and granting consequential relief to the appellant.

Conclusion:
The Tribunal's decision in this case highlights the importance of legal precedents and the interpretation of relevant rules in determining the entitlement to Cenvat credit on supplementary invoices. By relying on established case law and considering the specific circumstances of the case, the Tribunal ruled in favor of the appellant, emphasizing the recurring nature of the issue and the absence of fraudulent intent. The judgment serves as a reminder of the significance of past decisions in shaping current legal outcomes in tax matters.