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Tribunal allows Cenvat credit for GTA service and inter-unit invoices with minor errors The Tribunal ruled in favor of the appellant, allowing them to avail the Cenvat credit for both the GTA service and the invoices issued to a different ...
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Tribunal allows Cenvat credit for GTA service and inter-unit invoices with minor errors
The Tribunal ruled in favor of the appellant, allowing them to avail the Cenvat credit for both the GTA service and the invoices issued to a different unit but utilized by the appellant's unit. The Tribunal found that minor errors in the Central Excise registration number and invoice details should not result in denying the Cenvat credit, especially when there was no evidence of misuse. Consequently, the appellant was granted the right to claim the Cenvat credit for both services, overturning the lower authorities' decisions.
Issues: 1. Denial of Cenvat credit for GTA service due to incorrect Central Excise registration number in GAR-7. 2. Denial of Cenvat credit for invoices issued to a different unit.
Analysis: 1. The appellant had two manufacturing units, and the dispute arose regarding the Cenvat credit for GTA service at the Patudi unit. The service tax was paid under GAR-7, but the department objected to the credit due to the incorrect Central Excise registration number of the Khandsa unit in the GAR-7. The appellant argued that the denial of credit solely based on this mistake was unjustified as the appellant's name and address were correctly mentioned. The Tribunal held that such a minor error should not result in denying the Cenvat credit, ruling in favor of the appellant.
2. Another issue involved Cenvat credit for invoices issued to the Khandsa unit but utilized by the Patudi unit. The department objected to this credit as the invoices were not addressed to the Patudi unit. However, the service providers later issued corrected invoices, and the Khandsa unit confirmed not taking any credit based on those invoices. The Tribunal found that the denial of credit in this scenario was unwarranted, especially since there was no evidence of the Khandsa unit availing the credit. Consequently, the Tribunal allowed the appeal, granting the appellant the right to claim the Cenvat credit for both the GTA service and the corrected invoices.
In conclusion, the Tribunal overturned the lower authorities' decisions and ruled in favor of the appellant, allowing them to avail the Cenvat credit for both the GTA service and the invoices issued to the Khandsa unit but utilized by the Patudi unit.
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