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Tribunal Upholds Job Workers' Credit Eligibility, Citing Precedent and Board Instructions The Tribunal allowed the appeal, affirming the eligibility of credit for job workers based on invoices issued by registered dealers, following the ...
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The Tribunal allowed the appeal, affirming the eligibility of credit for job workers based on invoices issued by registered dealers, following the precedent set in the Achutha Vulcanising Cement Pvt. Ltd. case and the Board's instructions. The Tribunal found itself bound by the previous decision and the Board's letter, emphasizing that even if the Board's instructions were later found to be contrary to the law, the benefits of such instructions could not be denied based on the Supreme Court's ruling in the Dhiren Chemicals case.
Issues: Eligibility of credit available to job workers based on invoices issued by registered dealers.
Analysis: The central issue in this case revolves around the eligibility of credit for job workers concerning the invoices issued by registered dealers. The Department argued that the notifications specified invoices by registered dealers as necessary documents for credit availing, with a clarification that such invoices should be issued for the sale of goods and meet the details prescribed by the Board under Rule 57GG. As there was no sale transaction in the present case, the invoices issued by the registered dealer were deemed inadequate as prescribed documents for credit availment.
Upon hearing both parties, the Tribunal referred to a previous decision in the case of Achutha Vulcanising Cement Pvt. Ltd., where it was established that credit could be granted to job workers based on invoices from registered dealers. This decision was supported by a Board letter dated 9-9-1997. The Tribunal found itself bound by this precedent and thus allowed the appeal. It was noted that the Department's reliance on the Unicast (P) Ltd. case, where the High Court addressed a similar issue, did not negate the applicability of the Achutha Vulcanising Cement Pvt. Ltd. case and the Board's instructions. Even if the Board's instructions were eventually deemed contrary to the law, following the Supreme Court's ruling in the Dhiren Chemicals case, the benefits of such instructions could not be denied.
Consequently, the Tribunal allowed the appeal, affirming the eligibility of credit for job workers based on invoices issued by registered dealers, in line with the precedent set in the Achutha Vulcanising Cement Pvt. Ltd. case and the Board's instructions.
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