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2019 (10) TMI 1042 - CESTAT CHENNAICENVAT Credit - disallowance of credit taken by the appellant after availing the benefit VCES - credit dined on the ground that, the availment of credit on the basis of the discharge certificate dated 02.07.2014, is incorrect and also time-barred. - HELD THAT:- While understanding the VCES, we have to note that the admitted liability is paid by the assessee vide challans even before making the application. The department has to scrutinize the application and, thereafter, only if satisfied as to the declaration made, the discharge certificate is issued. In case there is any discrepancy or if the department is not satisfied with the liability declared, the application is liable to be rejected. Thus, the tax paid by the appellant becomes final under VCES, only when the discharge certificate is issued. The appellants can then take the credit on the basis of discharge certificate only. Under VCES, the challans being an intermediary payment, such documents cannot be a conclusive document for availment of credit. Further, the assessee cannot be found fault with when the department vide Circular dated 20.01.2014 has shied away from unequivocally clarifying as to whether the asssessee can avail credit on challan for tax paid before filing VCES application or the discharge certificate issued after acceptance of declaration - the credit availed on the discharge certificate is legal and proper. The Board’s Circular also clarifies that Cenvat credit is eligible on the tax paid under VCES. As discussed, only when the tax is finally accepted by department and the document is issued, the assessee would be able to avail the credit. For these reasons, the credit availed on the discharge certificate is legal and proper. The disallowance of credit is unjustified. Appeal allowed - decided in favor of appellant.
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