Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2023 (8) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2023 (8) TMI 1316 - AT - Central ExciseDenial of CENVAT Credit - Levy of penalty on appellant - input services on the strength of supplementary invoices - interpretation of Rule 9 (1) of the CENVAT Credit Rules, 2004 - HELD THAT:- Rule 9(1) of CCR provides for the documents against which the appellant could have taken the CENVAT credit. Whereas sub rule 1 (a) and (b) are with reference to the documents that are in respect of the clearance and payment of Central Excise Duty/ Countervailing duty, sub rule 1 (e), (f) and (g) prescribes the documents against which the CENVAT Credit of Service Tax could have been taken. Sub-rule 1 (b) makes the distinction between the invoices issued at the time of clearance of goods and those issued subsequently as supplementary invoices. As the manner of payment of service tax was made on the accrual basis with effect from 01.04.2011, which was akin to the what had been provided in respect of the goods, Rule 9 (1) (bb) was a natural consequence to align the CENVAT Credit Rules in respect of services and goods. It is the first time that CENVAT credit rules made distinction between the Invoice and Supplementary invoices in respect of service tax paid. Hence order of Commissioner drawing support from newly inserted rule 9 (1) (bb) to apply the Rule 9 (1) (b) for denying the credit availed by the appellant cannot cannot be sustained. There are no merits in the impugned order denying the credit on the supplementary invoices evidencing the payment of service tax for the period prior to amendments made in the CENVAT Credit Rule, 2004 by way of insertion of Rule 9 (1) (bb) with effect from 01.04.2011 - the issue of invocation of extended period of limitation not required to be taken of. The order disallowing the CENVAT Credit set aside, the order demanding the interest and for imposition of penalty will be set aside - the demands for Cenvat credit, interest and penalty is set aside. Appeal allowed.
|