Service tax credit on the basis of Commercial Invoice, Service Tax

[sunil mehta]

A pandal shamiana service provider purchases motor van for business purpose.He purchases motor van from a dealer (who is not a 1st stage or 2nd stage dealer).The dealer has issued commercial invoice in name of the service provider wherin details like engine no. and chassis number of van purchased is also mentioned.The dealer provides a copy of the excise bill from original manufacturer (say tata motors) raised in name of dealer. 'Tata motors' bill is for same engine no. and chassis no. for which dealer has sold to service provider. In other words service provider can prove that he has purchased excise paid goods from dealer for which cenvatible invoice copy of tata motors can be shown to stax suptd. Query:-1)Whether service provider can claim cenvat credit on basis of (comm. invoice of dealer &(ii) Tata motors invoice raised in name of dealer? 2)If not ,then whether benefit of proviso to Rule 9(2) can be taken where Dy.collector or Asst. Comm. of stax may allow cenvat credit if said document does not contain all particulars and he is satisfied....."

Posts / Replies

[Surender Gupta]

The issue raised by you is relevat and important. But, as of now, there is no statutory provision to avail cenvat credit on the basis of invoice of dealer who is not registered with the excise department. Though in case of motor vehicle, one to one co-relation is possible, but can not be taken as plea to avail cenvat credit. Rule 9(2) is about some discrepancies in the Invoice. An invoice of a non registered dealer can not be said an invoice otherwise eligible if discrepancy are removed. A dealer can issue an invoice only if he got himself registered with central excise department. The similar type of difficulty is there in case of Air conditioners, Computers etc. Hope the dealers would understand the issue and got themselves registered to extend the maximum benefit to the buyers.

[rakesh chitkara]

While dittoing Mr. Gupta's reply, may I add that if you can still persuade the dealer to take registration with C.Ex., you can still avail credit for the bills dated prior to registration. There are a number of case-laws that would support you, as substantive benefit can not be denied for procedural and technical irregularities. Failing that you are on a weak wicket.