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June 28, 2022

Cenvat credit cannot be denied based solely on the availability of photocopies of invoices.

by CA Shivam Jaiswal in Income Tax

Cenvat credit cannot be denied based solely on the availability of photocopies of invoices.

DKNV-Engineering Pvt Ltd Vs Commissioner of Central Excise ST CESTAT Ahmedabad

Facts and issues of the case

The limited issue involved in the present case is that the Revenue denied Cenvat credit availed on the strength of Xerox copies of the purchase invoices.When the matter was called, none appeared on behalf of the appellant.Shri J. A Patel, learned Superintendent (AR) appearing on behalf of the Revenue reiterates the findings of the impugned order. He submits that the appellant was supposed to take Cenvat credit on the original copies of the invoices, therefore, the department has rightly denied the credit availed on photocopies.

Observation by the court

Court had heard the learned Authorised Representative and perused the record. I find that the credit was denied only on the basis that appellant failed to produce original copy of invoices. However, there is no dispute as regards the purchase of goods and use thereof in the manufacture of final product. The goods is entered in the purchase accounts and therefore, purchase of goods, receipt and use thereof in the manufacture of final products is not disputed. Merely because the original copy of invoice is not available, it cannot alter the important criteria of availing the credit when it is satisfies other criteria. On going through the judgments, it is settled that availment of credit on the strength of photo copies of the invoices is just a procedural lapse and cannot be made the basis to disallow the credit. For this reason, in the absence of any evidence that appellant had not received the goods, credit cannot be denied.

Conclusion

Therefore, the reasons for denial of credit is not sustainable. Accordingly, the impugned order is set-aside and the appeal is allowed.

DKNV-Engineering-Pvt-Ltd-Vs-Commissioner-of-Central-Excise-ST-CESTAT-Ahmedabad-1

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