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Dknv Engineering Pvt Ltd vs. Commissioner of Central Excise & ST - (Customs, Excise and Service Tax Appellate Tribunal) (13 Jun 2022)

Availment of credit on the strength of photocopies of the invoices is a procedural lapse and cannot be made the basis to disallow the credit

MANU/CS/0138/2022

Service Tax

The limited issue involved in the present case is that the Revenue denied Cenvat credit availed on the strength of Xerox copies of the purchase invoices.

Learned Superintendent (AR) appearing on behalf of the Revenue reiterates the findings of the impugned order and submits that the Appellant was supposed to take Cenvat credit on the original copies of the invoices, therefore, the Department has rightly denied the credit availed on photocopies.

The credit was denied only on the basis that Appellant failed to produce original copy of invoices. However, there is no dispute as regards the purchase of goods and use thereof in the manufacture of final product. The goods are entered in the purchase accounts and therefore, purchase of goods, receipt and use thereof in the manufacture of final products is not disputed. Merely because the original copy of invoice is not available, it cannot alter the important criteria of availing the credit when it is satisfies other criteria.

It is settled that, availment of credit on the strength of photo copies of the invoices is just a procedural lapse and cannot be made the basis to disallow the credit. In the absence of any evidence that appellant had not received the goods, credit cannot be denied. Therefore, reasons for denial of credit are not sustainable. Accordingly, the impugned order is set-aside. Appeal allowed.

Tags : CENVAT CREDIT   DENIAL   VALIDITY  

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