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of <h1>Dispute over Modvat/CENVAT credit for non-compliant invoices leads to Tribunal referral for resolution</h1> The appellants' claim for Modvat/CENVAT credit on inputs with non-compliant invoices was rejected by the lower authorities due to the invoices not meeting ... Cenvat/Modvat - Duty paying documents Issues:Claim of Modvat/CENVAT credit on inputs with non-compliant invoices.Analysis:The case involved the appellants, engaged in manufacturing goods under Chapter 72 of the Central Excise Tariff Act, 1985, claiming Modvat credit on inputs and capital goods. The issue arose when the appellants claimed credit on certain inputs with invoices that did not meet the prescribed requirements. The lower authorities rejected the plea, emphasizing the mandatory nature of using a specific color code in the invoices as per Rule 57-GG. They cited a previous case where credit was rightfully denied for using a white duplicate invoice instead of a pink one. The appellants, citing a letter from their supplier explaining a printing error, argued it was a technical lapse. The advocate relied on case law to support the appellants' position, emphasizing that credit should not be denied for the seller's mistakes and referencing cases where credit was allowed despite minor discrepancies in the invoices.The advocate also highlighted a Tribunal case overlooking missing particulars in invoices and a circular emphasizing the need for proper inquiries before issuing show cause notices for procedural lapses. The advocate suggested the matter be referred to a Larger Bench due to contradictory Tribunal orders on the issue of invoice color admissibility for availing Modvat/CENVAT credit. The Tribunal acknowledged the conflicting orders and recommended the matter be placed before the Honorable President for constituting a Larger Bench to address the issue along with related cases. The judgment concluded by dictating and pronouncing the decision in the open court, indicating the need for further consideration by a Larger Bench to resolve the conflicting precedents.
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