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TMI Blog2016 (8) TMI 398X X X X Extracts X X X X X X X X Extracts X X X X ..... tory condition, which cannot be ignored. Mere non-mentioning thereof is fatal. In our view, the opinion expressed is contrary to the law laid down by this court as these type of technical defects in the invoices cannot be fatal for grant of input tax credit to the claimant. The claim of the appellant had been rejected only on the ground that the invoice did not contain the words “Input Tax Credit is available to a person against this copy”. The input tax credit available to a person and the genuineness of the transaction otherwise had not been examined by the authorities to record a finding that the tax, credit of which was being sought by the appellant, had in fact been paid by him to the selling dealer at the time of purchase of goods. Accordingly, question is answered in negative while holding that the Tribunal was not justified in rejecting the claim of input tax credit merely on technicalities, when the dealer was able to show that the tax had been paid to the selling dealer and duly deposited with the State. Provisions of Rule 54 of the Rules are not mandatory, in case the claimant/dealer is able to prove from other evidence that the transaction and the claim is genuin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Casting Pvt. Ltd., learned counsel for the appellant, while referring to the provisions of Section 13(2) of the Punjab Value Added Tax Act, 2005 (for short, 'the VAT Act') and Rules 18, 21(3) and 51 of the Punjab Value Added Tax Rules, 2005 (for short, 'the Rules'), submitted that the entire information as provided for in the Rules was available in the invoices. Merely because on the original copy of the VAT invoice, the words Input Tax Credit is available to a person against this copy were not printed on the invoice will not debar the appellant from claiming input tax credit, as the same being highly technical, once sufficient material was produced in evidence before the competent authority to show that the seller had deposited the amount of tax collected from the appellant with the department. He further submitted that even submission of the tax invoice with the aforesaid words written thereon is also not a conclusive proof as the authority can still verify the claim. Meaning thereby the substance has to be seen and not merely the document. The appellant does not have any control over the kind of invoice issued by a selling dealer, hence, he cannot be penalised. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xx xx xx (12) Save as otherwise provided hereinafter, input tax credit shall be allowed only against the original VAT invoice and will be claimed during the period in which such invoice is received. (13) In case the original VAT invoice is lost or mutilated, the input tax credit will be available only after the designated officer has determined the credit in the prescribed manner. (14) If upon audit or cross verification or otherwise, it is found that a taxable person has made a false input tax credit claim, the Commissioner or the designated officer, as the case may be, shall order for recovery of whole or any part of such input tax credit, as the case may be, without prejudice to any action or penalty provided for in this Act. (15) The onus to prove that the VAT invoice on the basis of which, input tax credit is claimed, is bona fide and is issued by a taxable person, shall lie on the claimant. Rules 18, 21, 26 and 54 of the Rules R.-18 . Conditions for input tax credit.- The input tax credit under Section 13 of the Act will be admissible to a taxable person, if such a person has - (a) in his possession the original VAT invoice, issued to him by a ta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... been availed of by a taxable person against the purchase of goods, a part of which is, either used in manufacturing the goods, specified in Schedule 'A' or disposed of otherwise than by way of sale, the input tax credit so availed for such part of goods will be deducted from input tax credit for the relevant period of use or disposal referred to above. If, as a result of such deduction, there is negative input tax credit balance for a particular period, the person concerned shall pay such tax forthwith, as if the same was payable in the said period. (7) Input tax credit in the case of Iron and Steel goods as enumerated in clause (iv) of section 14 of the Central Sales Tax Act, 1956, except wheels, tyres, axles, wheel sets shall not be available unless the purchaser is a first stage taxable person or second stage taxable person or third stage taxable person. (8) where some goods as input or output are lying in the stock of a taxable person and where rate of tax on such goods is reduced from a particular date, then from that date, input tax credit shall be admissible to the taxable person on the sale of goods lying in stock or on using the goods as input for manufactur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... x charged in respect of taxable goods; (i) the total value; (j) If the goods are being sold, transferred or consigned to a place outside the State, serial number of Form VAT-36; (k) mode of transportation of goods and details thereof; and (l) signatures of the proprietor or partner or director or his authorised agent. (m) in case of sale of Iron and Steel goods as enumerated in clause-IV of section-14 of Central Sales Tax Act, 1956 except wheels, tyres, axles, wheel sets, the following certificate shall be printed on the backside of the VAT invoice:- Certificate under Rule 54 of the PVAT Rules, 2005. (To be printed on the backside of the invoice). Certified that in case of goods covered under this invoice: First Importer/ Manufacture (1) First State Taxable person (2) Second Stage Taxable person (3) Name of the Taxable person 10 of 19 TIN Commodity ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... duly bound invoice or cash memo book, except where it is prepared on computer or any other electronic or mechanical device. It shall be in triplicate. The original copy of the VAT invoice shall contain the words input tax credit is available to a person against this copy . It will be issued to the purchaser only. The second copy thereof will not entitle the holder to claim input tax credit. It shall be used only for the purpose of transportation of goods. The last copy shall be retained by the seller. VAT Invoice shall be printed on the invoice. The VAT invoice shall contain the serial number, date of issue, name, address, registration number of selling and buying dealer, description, quantity and value of goods, rate and the amount of tax charged, total value, mode of transportation, stage of purchase and the signature of the authorised person of the selling dealer. 11. The issue as to whether minor discrepancy in the contents of an invoice will be fatal for making a claim for input tax credit was considered by Division Bench of this Court in M/s New Devi Grit Udyog's case (supra). The case pertained to the claim made under Haryana Value Added Tax Act, 2003. It contains ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... action by producing evidence before him. Ordered accordingly. Consequently, the impugned orders Annexures A.1, A.2, A.4 and A.7 are set aside. All the appeals stand disposed of as such. 12. Considering a similar issue with reference to entitlement of modvat credit under the 1944 Act, a Division Bench of this Court in Ralson India Ltd.'s case (supra) opined that mere technicalities should not be a hurdle in grant of modvat credit under the beneficial scheme once it is proved that the transaction was genuine and the tax had been paid to the State. Paragraph 9 thereof is extracted below: 9. Rule 57A of the Rules allows to a manufacturer credit of any duty of excise etc. paid on the goods used in the manufacture of the specified goods. Rule 57G lays down the procedure to be observed by the manufacturer intending to take credit of the duty paid on the inputs. Sub-rule (3) contemplates that no Modvat credit shall be taken by the manufacturer unless the inputs are received in the factory under the cover of various documents enumerated thereunder. However, sub-rule (6), which is in the nature of a non-obstante clause, carves out an exception to sub-rule (3). It provides that a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the fact that the goods have been exported. Even if the documents are produced, the adjudicating authority can still come to the conclusion that the goods were not exported. On the other hand, if the documents such as original or the duplicate copy of ARE-1 Form is not produced, the adjudicating authority can still come to the conclusion that the goods were in fact exported. The Central Excise Officer has to record a satisfaction that the claim is in order. It is question of fact as to whether the claim is genuine or not. Such satisfaction can be recorded even in the absence of original/duplicate copy of ARE-1 Form. The express language of the notification is the recording of the satisfaction of the Central Excise Officer that the claim is in order so as to sanction the rebate either in whole or in part. Since such exercise has not been undertaken by the Adjudicating Officer or any of the authorities under the Act, therefore, we set aside the orders passed and remit the matter back to the Adjudicating Authority to record a satisfaction to the effect whether the claim of the petitioner for rebate is in order or not. 14. The consistent view, as appears from the aforesaid ju ..... X X X X Extracts X X X X X X X X Extracts X X X X
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