CANVAT credit, Other Topics

[Sanjay Vasava]

Dear Sir,

If duplicate transporter copy missed, can we availed CANVAT Credit?

Please advice in detail.

Thanks & Regards,

Sanjay Vasava

Posts / Replies

[SHIVKUMAR SHARMA]

Shri Sanjay

Yes,Please refer Rule 9 of Cenvat Credit rules 2004.

[KASTURI SETHI]

Credit is allowed. Where it is written that only duplicate copy is required for Cenvat Credit ?

[Sanjay Vasava]

Dear Sir,

Thanks.

Sanjay Vasava

[MARIAPPAN GOVINDARAJAN]

In the absence of original bill credit may be utilized on the basis of zerox copy or duplicate copy of the bill but you have to satisfy your jurisdictional Superintendent in this regard that your case is a genuine one.

[YAGAY AND SUN]

In the meeting of the Regional Advisory Committee, Chennai Zone which was held on 12.07.2016, the Hon’ble Chief Commissioner of Central Excise while replying to a question raised on availment of CENVAT credit on Duplicate copy of the Invoice, it has been confirmed by the Hon’ble Chief Commissioner that after perusing the relevant provisions of CENVAT credit Rules, 2004 and Central Excise Rules, 2002 in this regard, there is no change in legal position and it is mandatory to avail the CENVAT credit only on Duplicate copy of the Invoice.

Our view: In our view, there is nowhere mention in the CENVAT credit Rules, 2004 read with Central Excise Rules, 2002 that CENVAT credit shall be available only on the Invoice - Duplicate for Transport. However, this aspect needs further exploration for the purpose of clarity and compliance.

[Rajagopalan Ranganathan]

Sir,

As per rule 11 (3) of Central Excise Rules, 2002 invoices shall be prepared in triplicate and the purpose of the three copies of the invoice is as indicated below: -

(i) the original copy being marked as ORIGINAL FOR BUYER;

(ii) the duplicate copy being marked as DUPLICATE FOR TRANSPORTER;

(iii) the triplicate copy being marked as TRIPLICATE FOR ASSESSEE.

As per rule 9 (1) of Cenvat Credit Rules, 2004-

The CENVAT credit shall be taken by the manufacturer or the provider of output service or input service distributor, as the case may be, on the basis of any of the following documents, namely :-

(a) an invoice issued by-

(i) a manufacturer or a service provider for clearance of -

(I) inputs or capital goods from his factory or depot or from the premises of the consignment agent of the said manufacturer or from any other premises from where the goods are sold by or on behalf of the said manufacturer;

(II) inputs or capital goods as such;

(ii) an importer;

(iii) an importer from his depot or from the premises of the consignment agent of the said importer if the said depot or the premises, as the case may be, is registered in terms of the provisions of Central Excise Rules, 2002;]

(iv) a first stage dealer or a second stage dealer, as the case may be, in terms of the provisions of Central Excise Rules, 2002; or

(b) a supplementary invoice, issued by a manufacturer or importer of inputs or capital goods in terms of the provisions of Central Excise Rules, 2002 from his factory or depot or from the premises of the consignment agent of the said manufacturer or importer or from any other premises from where the goods are sold by, or on behalf of, the said manufacturer or importer, in case additional amount of excise duties or additional duty leviable under section 3 of the Customs Tariff Act, has been paid, except where the additional amount of duty became recoverable from the manufacturer or importer of inputs or capital goods on account of any non-levy or short-levy by reason of fraud, collusion or any wilful misstatement or suppression of facts or contravention of any provisions of the Excise Act, or of the Customs Act, 1962 (52 of 1962) or the rules made there under with intent to evade payment of duty.

Explanation.- For removal of doubts, it is clarified that supplementary invoice shall also include challan or any other similar document evidencing payment of additional amount of additional duty leviable under section 3 of the Customs Tariff Act; or

(bb) a supplementary invoice, bill or challan issued by a provider of output service, in terms of the provisions of Service Tax Rules, 1994 except where the additional amount of tax became recoverable from the provider of service on account of non-levy or non-payment or short-levy or short-payment by reason of fraud or collusion or wilful mis-statement or suppression of facts or contravention of any of the provisions of the Finance Act or of the rules made thereunder with the intent to evade payment of service tax.

(c) a bill of entry; or

(d) a certificate issued by an appraiser of customs in respect of goods imported through a Foreign Post Office; or, as the case may be, an Authorized Courier, registered with the Principal Commissioner of Customs or the Commissioner of Customs in-charge of the customs airport,] or

(e) a challan evidencing payment of service tax, by the service recipient as the person liable to pay service tax; or

(f) an invoice, a bill or challan issued by a provider of input service on or after the 10th day of, September, 2004; or

(fa) a Service Tax Certificate for Transportation of goods by Rail (herein after referred to as STTG Certificate) issued by the Indian Railways, along with the photocopies of the railway receipts mentioned in the STTG certificate; or

(g) an invoice, bill or challan issued by an input service distributor under rule 4A of the Service Tax Rules, 1994.

It is no where stated in these two rules that credit can be availed only on the strength of duplicate copy meant for transporter. Therefore credit can be availed either on original or duplicate copy of the invoice. If both are lost then you may request your supplier to provide the triplicate copy so that you can avail the credit.

[Ganeshan Kalyani]

Sir, I agree with the experts view. The provision states that credit should be availed based on invoice raised by the supplier. The type of invoice for availing credit is not mentioned. However as opined by Sri Mariappan Sir , during audit the authority if point the issue then he need to be satisfied with the facts. Thanks.

[YAGAY AND SUN]

There are judgments on either side on availment of CENVAT credit on Xerox/photocopy of the Invoice/Bill/Bill of Entry/challan etc. So in our view, take a conservative view while availing CENVAT credit on such Xerox/photocopy of the Invoice/Bill/Bill of Entry/challan etc.

[KASTURI SETHI]

Cenvat credit on photo copy of invoice is always challengable. There may be case laws in favour of assessee but one must go by the laws and not by the judgements. Who will like to face the rigours of litigation ? Who will like to pay interest and penalty ? So better option is not to resort to photocopy of invoice for taking credit.

[CS SANJAY MALHOTRA]

Agree with Experts and even my personal submission is not to avail CENVAT on photocopy. Better would be to go ahead and avail CENVAT on Original, if duplicate is lost in transit as CCR 2004 does not restrict the CENVAT to Duplicate for Transport Copy.

[Ganeshan Kalyani]

Sri Sanjay Vasava Ji, received a satisfactory reply I hope. Now he has to take a call. Thanks.

[YAGAY AND SUN]

In case of lost of the Duplicate Copy, lodge FIR and avail the CENVAT credit on Original Copy of the Invoice. Original Copy of the Invoice being Tax Invoice, on which ITC is also claimed, therefore, mandatory to preserve it for five years.

[SUNTHARRAJEN P S]

Dear Mr.Sanjay,I fully agree with the views of Mr.Rajagopalan Ranganathan.However in practical,still,Duplicate for Transporter copy is insisting for availing CENVAT.Even Audit objections are also raising in the absence of Duplicate for Transporter.So we have to cop up with the practicality.Hence it is advised that in the absence of Duplicate for Transporter,Credit can be availed based on Original Invoice.