Home Case Index All Cases Central Excise Central Excise + HC Central Excise - 2018 (1) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (1) TMI 306 - ALLAHABAD HIGH COURTUtilization of CENVAT credit - non-compliance of Rule 7 and 9 of the CENVAT Credit Rules, 2004 read with Rule 4A(2) of the Service Tax Rules, 1994 - only objection raised by the revenue in the present appeal appears to be that the procedure required to be followed for transfer of CENVAT credit has been violated and therefore the assessee was not entitled to avail CENVAT credit at the manufacturing unit. Held that: - the CENVAT Rules read with Service Tax Rules do not prescribe or require primary evidence of CENVAT credit arising to be transmitted by the "Input Service Distributor"/head office to it's manufacturing unit where such credit is to be utilised. Those Rules only require details of such existing CENVAT credit to be transmitted. Obviously, the eventual utilisation would have to be equal to and reconcile with the exact/correct figures of CENVAT credit available with the "Input Service Distributor" before it's transfer to the manufacturing unit - However, as noted above, there is no allegation of excess claim made by the assessee. Merely because the assessee here had provided the details on it's letter head, it would not entail any further, other or new inquiry mechanism or step to be taken by the revenue to make such reconciliation. It would make no material difference to the revenue. In so far as it is admitted to the revenue that the CENVAT credit that had been transferred to the manufacturing unit had arisen at its head office, mere non-issuance of the invoice bill/challan while transferring that CENVAT credit to another manufacturing unit (of the same assessee) appears to be a purely technical infringement arising from absence of form rather than absence of substance. It is the substance and contents of the documents that was relevant to be disclosed in the interest of revenue and not the form on which such details were required to be furnished. For instance, an invoice if issued is either wanting in necessary details or the details that are filled up are wrong, the assessee would not be entitled to any benefit - no prejudice appears to have been caused to the revenue merely on account of issuance of the letter by the assessee, as has been done in the instant case. Appeal dismissed - decided against Revenue.
|