Documentary evidence for Cenvat credit excludes formula-based restriction under the notification

Rule 9A(1) of the CENVAT Credit Rules, 2002 permits availment of Cenvat credit on the basis of documentary evidence establishing entitlement, and the formula-based restriction in Notification No. 35/2003 is not applicable where such documents exist. The text also notes that credit relating to stock remaining with a job worker was treated as eligible under the rule, which answered the objection of excess credit in favour of the assessee and supported sustaining the credit claim.

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Issues: Whether the respondent was entitled to avail Cenvat credit on the basis of documentary evidence under Rule 9A(1) of the CENVAT Credit Rules, 2002, and whether Notification No. 35/2003 dated 10-04-2003 applied to restrict the credit.

Analysis: Rule 9A(1) permits availment of Cenvat credit on the basis of documentary evidence to determine the credit available. The respondent had produced such evidence, so the formula under the notification meant for cases where credit is taken without documents was not applicable. The claim regarding excess credit was also explained on the basis that some stock remained with the job worker, which was treated as eligible for credit under the rule.

Conclusion: The respondent was entitled to avail Cenvat credit on the basis of documentary evidence, and the notification relied upon by the Revenue did not apply. The finding is in favour of the assessee.

Final Conclusion: The impugned order allowing the credit was sustained and the Revenue's appeal failed.

Ratio Decidendi: Where Cenvat credit is supported by documentary evidence under Rule 9A(1), the formula-based restriction meant for cases of credit without documents cannot be applied.

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