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2015 (12) TMI 1307 - CESTAT AHMEDABAD

2015 (12) TMI 1307 - CESTAT AHMEDABAD - TMI - Denial of CENVAT Credit - appellant availed the Cenvat Credit on Grey Fabrics against the endorsed invoices - Invocation of extended period of limitation - Held that:- Rule 9 of the Cenvat Rules prescribed the documents for availment of the Cenvat Credit - On perusal of the Rule 9 of the Cenvat Credit Rules, it is clear that the Cenvat Credit cannot be allowed on the endorsed invoice. So, the appellant is not entitled to avail cenvat Credit on the ba .....

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er on job charges. There was an option that the merchant/supplier may discharge duty through the processor (job worker) and permitted the processor to avail credit on invoices in the name of the merchant endorsed by such merchants. The said scheme was withdrawn with effect from 10.9.2004. To sum up, the job worker is not entitled to avail cenvat credit after 10.9.2004 on endorsed invoices. - Central Excise audit officers during the verification of the records detected the irregular availment of .....

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he Central excise Tariff Act 1985 on job work basis. They received duty paid grey fabrics from the dealers and availed Cenvat Credit on the basis of the invoices, bearing the name of the dealer, which were endorsed in favour of the appellant. A show cause notice dtd 26.11.2008 was issued proposing to deny the Cenvat Credit of ₹ 15,83,994/- alongwith interest and to impose penalty for the period from December 2004 to July 2006. It has been alleged that the appellant availed the Cenvat Credi .....

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Fabrics from the merchant/dealers accompanied with Central Excise invoices bearing the name of dealer duly endorsed in their favour and also accompanied with challans. There is no dispute that the fabrics were used in the manufacture of the final product and cleared for payment of duty. So, cenvat credit cannot be denied. He submits that the Tribunal and the Honble High Court in the identical situation consistently viewed that the assessee is eligible to avail Cenvat Credit on endorsed invoice .....

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d the relevant portion of the findings of the Commissioner (Appeals) that after 2.9.2004 the availment of Cenvat Credit on endorsed invoices has completely done away. 4. After hearing both the sides and on perusal of the records, I find that the Rule 9 of the Cenvat Rules prescribed the documents for availment of the Cenvat Credit. Rule 9 is reproduced below: 9. Documents and accounts.- (1) The CENVAT credit shall be taken by the manufacturer or the provider of output service or input service di .....

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gnment agent of the said importer if the said depot or the premises, as the case may be, is registered in terms of the provisions of Central Excise Rules, 2002; (iv) a first stage dealer or a second stage dealer, as the case may be, in terms of the provisions of Central Excise Rules, 2002; or (b) a supplementary invoice, issued by a manufacturer or importer of inputs or capital goods in terms of the provisions of Central Excise Rules, 2002 from his factory or depot or from the premises of the co .....

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ul misstatement or suppression of facts or contravention of any provisions of the Excise Act, or of the Customs Act, 1962 (52 of 1962) or the rules made there under with intent to evade payment of duty. Explanation.- For removal of doubts, it is clarified that supplementary invoice shall also include challan or any other similar document evidencing payment of additional amount of additional duty leviable under section 3 of the Customs Tariff Act; or (c) a bill of entry; or (d) a certificate issu .....

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the Service Tax Rules, 1994. 5. On perusal of the Rule 9 of the Cenvat Credit Rules, it is clear that the Cenvat Credit cannot be allowed on the endorsed invoice. So, the appellant is not entitled to avail cenvat Credit on the basis of the endorsed invoices for the period of December 2004 to July 2006. Further, the appellant is a job worker. They received the Gray fabrics from the merchant/dealer for processing. With effect from 1.3.2003, the Central Excise Simplified Textile Scheme was implemen .....

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ct from 10.9.2004. To sum up, the job worker is not entitled to avail cenvat credit after 10.9.2004 on endorsed invoices. 6. The Learned Advocate relied upon the various decisions. In the case of Vimal Enterprises (Supra) the period of dispute is July 1994 to August 1994. In the case of Darshan Industries the period of dispute appears to be 1994. In the case of Gautam Weaving Mills (supra), even the period is after 2004, in that case the appellants were engaged in the manufacture of grey fabrics .....

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