TMI Blog2019 (10) TMI 1042X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 cert ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ncorrect and also time-barred. After due process of law, the original authority disallowed the credit and confirmed the demand along with interest and also imposed penalty. In appeal, the Commissioner (Appeals) upheld the same. Hence this appeal. 2. On behalf of the appellants, the learned counsel Ms. Mithula appeared and argued the matter. She referred to section 107(2) of Finance Act, 2013 as well as section 108 and submitted that the department has accepted the liability declared by the appellants and issued a discharge certificate only on 02.07.2014. Therefore, the appellants have correctly availed the Cenvat credit on 31.10.2014, which is within the time of limitation. The period for availing the credit is six months fro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Before filing the application, they have deposited 50% of the admitted liability vide separate challans on 27.12.2013. The question is whether the appellants have to avail credit on the basis of these challans or the discharge certificate issued on 02.07.2014. As per Rule 9, the challans on which tax is paid is mentioned as document for taking credit. Incidentally, the said rule does not speak about the tax paid under VCES. The Board has issued a Circular dated 20.01.2014 from which it can be understood that Cenvat credit is eligible even if the appellant adopts for payment of tax under VCES. However, though it is a Circular of clarification, there is not much clarity in the Circular as to whether the assessee has to avail credit on the cha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... leging that it is not a proper document. The Commissioner (Appeals) accepted that discharge certificate is valid document but denied credit observing that the appellants ought to have taken the credit on the basis of challans and that therefore credit availed is time-barred. The Tribunal held that when the Commissioner (Appeals) recorded finding that the discharge certificate is a valid document for availing credit, ought not to have travelled beyond the show-cause notice to hold that the appellants have to avail credit on challans. The department in the above case has accepted the discharge certificate to be a valid document for taking credit. The Board s Circular also clarifies that Cenvat credit is eligible on the tax paid under VCES. As ..... X X X X Extracts X X X X X X X X Extracts X X X X
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