TMI Blog2020 (3) TMI 1299X X X X Extracts X X X X X X X X Extracts X X X X ..... tral Excise Law) in respect of such inputs. I observe that the VAT invoices, submitted by the appellant, do not fulfil the conditions for being a valid document under Rule 9 of the Cenvat Credit Rules, 2004 or Rule 11 of the Central Excise Rules, 2002 (i.e. the existing law). The appellant has also paid reliance upon the decision of Hon ble Gujarat High Court in the case of DOWNTOWN AUTO PVT. LTD. VERSUS UNION OF INDIA [ 2019 (2) TMI 542 - GUJARAT HIGH COURT] - It is found that the above decision is an interim judgment not a final decision. Hence it will not be justified to use the same as in favor/against of any party. The appellant was not in possession of prescribed documents evidencing payment of duty under the existing law for a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der the existing law as required under Section 140(3)(iii) of the CGST Act, 2017. Hence, the department was of the view that the supplier has wrongly availed input tax credit of ₹ 90,639/- under the CGST head (eligible duties paid on such inputs) in contravention of the provisions of Section 140(3) of the Act read with Rule 117 of CGST Rules, 2017 which is recoverable under Section 73(1) of the Act. 3. Accordingly, a show cause notice dated 3-7-2018 was served on the appellant calling him upon to explain as to why input tax credit of ₹ 90,639/- wrongly availed by them should not be disallowed and recovered from them with applicable interest under Section 73(1) of the CGST Act, 2017 read with Section 50 ibid. Penalty under Sec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of non-registration of Depot with Excise Deptt. for which no such condition is there for allowing ITC. The presented condition is only to show duty payment of face of invoice. 4.4 That as per intention of law, no such disallowance can be made on such technical ground specially when the payment of collected duty confirmed by their head office by issuance of Certificates in proof of deposit of duty. That the imposition of penalty is quite wrong and illegal. 5. Personal hearing in the matter was fixed for 24-1-2020, 11-2-2020 25-2-2020 but no one appeared for the purpose. However, M/s. O.P. Maheshwari Co., CA vide their letters dated 21-1-2020 20-2-2020 submitted that : Copy of challan dated 12-3-2019 for pre-deposit of S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... put tax credit. - (3) A registered person, who was not liable to be registered under the existing law, or who was engaged in the manufacture of exempted goods or provision of exempted services, or who was providing works contract service and was availing of the benefit of notification No. 26/2012-Service Tax, dated the 20th June, 2012 or a first stage dealer or a second stage dealer or a registered importer or a depot of a manufacturer, shall be entitled to take, in his electronic credit ledger, credit of eligible duties in respect of inputs held in stock and inputs contained in semi-finished or finished goods held in stock on the appointed day subject to the following conditions, namely :- (i) such inputs or goods are used or i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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