2016 (1) TMI 383 - AT - Central Excise

Tribunal allows credit on re-constructed copies of bills of entry

The Tribunal ruled in favor of the appellant, allowing the admissibility of credit on re-constructed copies of bills of entry. The denial of credit on ... Admissibility of Cenvat credit on reconstructed bills of entry - time-bar for availing Cenvat credit - credit on goods used in office within the factoryAdmissibility of Cenvat credit on reconstructed bills of entry - Whether Cenvat credit is admissible on reconstructed copies of bills of entry authenticated by Customs officers. - HELD THAT: - The Tribunal found that the appellants had originally lost the bills of entry and had lodged an FIR. Reconstructed bills of entry produced during the pendency of the appeal were attested as true copies by officers of the Customs Authorities. The authentication by the Customs officers established the genuineness of the duty paid documents. The Tribunal applied its earlier view that credit should not be denied merely because bills of entry are reconstructed copies and held that, on the facts, denial of credit was unjustified. [Paras 6, 9]Credit on reconstructed bills of entry authenticated by Customs officers is admissible; first ground of denial answered in favour of the assessee.Time-bar for availing Cenvat credit - Whether Cenvat credit can be denied because the duty paying documents are more than one year old. - HELD THAT: - The Tribunal noted that receipt of inputs and payment of duty were not disputed. It observed that the Cenvat Credit Rules, 2002 do not prescribe any time limit for availing credit on inputs or capital goods. Accordingly, the Revenue's contention that credit must be denied on account of documents being over one year old was rejected. [Paras 7, 9]Disallowance of credit on the ground that documents are more than one year old is unjustified.Credit on goods used in office within the factory - Whether Cenvat credit on air conditioners installed in the office of the factory is admissible. - HELD THAT: - The appellants contended that the air conditioners were installed in the office which forms part of the factory. The Tribunal relied on Board's Circular No.943/4/2011 CX which treats goods such as furniture and stationery used in an office within the factory as goods used in relation to manufacturing/business and therefore eligible for credit. Applying that position, the Tribunal held that credit on the air conditioners installed in the factory office is admissible. [Paras 9]Credit on air conditioners installed in the office within the factory is admissible.Final Conclusion: Impugned orders setting aside disallowance of credit are allowed; appeals are allowed and issues decided in favour of the appellant with consequential reliefs. Issues:Admissibility of credit on re-constructed copies of bill of entry.Analysis:1. Background and Facts: The appellants, engaged in manufacturing pneumatic tyres, availed cenvat credit on inputs, capital goods, and input services. The department observed that the appellants took credit on photocopies of bills of entries as the originals were lost. A show cause notice was issued proposing disallowance of credit on various grounds. The order-in-original confirmed the demand and imposed penalties, which was partially modified by the Commissioner (Appeals). The appellant then filed an appeal before the Tribunal against the Commissioner's order.2. First Appeal (E/1789/2006): The main issue was the disallowance of credit on photocopies of bills of entries. The appellants obtained re-constructed bills of entry during the pendency of the appeal and availed credit on them. However, this credit was also reversed following objections by the Audit party. A subsequent show cause notice was issued, and after adjudication, the disallowance of credit on re-constructed bills of entry was confirmed by the order-in-original. The Commissioner (Appeals) upheld this decision, leading to the appeal no.E/1519/2007 against the Commissioner's order.3. Dispute and Decision: The core dispute revolved around the admissibility of cenvat credit on re-constructed copies of bills of entry. The appellant had the originals but lost them, lodging an FIR for the same. The credit was initially denied due to the bills being photocopies. Subsequently, the appellants obtained re-constructed copies, which were also denied credit. However, these re-constructed bills were attested as true copies by Customs Authorities, making them proper duty paying documents. The Tribunal held that the denial of credit on re-constructed copies was unjustified.4. Time Limit for Availing Credit: Another ground for denying credit was that some documents were more than a year old. However, the Cenvat Credit Rules, 2002 do not specify any time limit for availing credit on inputs or capital goods. Therefore, the contention of the Revenue on this point was dismissed.5. Verification of Re-constructed Documents: The Revenue argued for a chance to verify the re-constructed documents, but the Tribunal deemed it unnecessary as both appeals pertained to the same issue. The Tribunal also rejected the Revenue's objection to considering the re-constructed bills as additional evidence, as they were part of the records and not disputed in either adjudication.6. Precedent and Conclusion: Referring to a previous Tribunal judgment, the Tribunal held that credit should not be denied solely for bills of entry being re-constructed copies. Following this precedent and the facts of the case, the Tribunal concluded that the appellant was entitled to avail credit on re-constructed copies of bills of entry. The issues were held in favor of the appellant, and the impugned orders were set aside, allowing the appeals with any consequential reliefs.In conclusion, the Tribunal ruled in favor of the appellant, allowing the admissibility of credit on re-constructed copies of bill of entry and dismissing the Revenue's grounds for denial of credit.