Tribunal allows cenvat credit on first stage dealer invoice

The Tribunal ruled in favor of the appellant, stating that the cenvat credit taken based on the first stage dealer invoice, even if issued by the importer, was admissible. The impugned order was set aside, and the appeal was allowed.

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Issues: Availment of cenvat credit based on invoices issued by an importer registered as a first stage dealer under Rule 9 of Central Excise Rules, 2002.

Analysis:
1. The appellant availed cenvat credit based on invoices issued by an importer registered as a first stage dealer. The department contended that since the supplier importer was not registered as an importer for issuing invoices, the cenvat credit was not admissible.

2. The appellant's counsel argued that the importer was registered under Rule 9 as a first stage dealer, making the invoice valid. Any procedural lapses should not result in credit denial. Legal precedents were cited to support this argument.

3. The Revenue, represented by the Assistant Commissioner, upheld the impugned order, emphasizing the post-amendment requirement for importers to register specifically for issuing cenvatable invoices.

4. The Tribunal considered both sides' submissions and reviewed the records. It noted that the invoice was issued by the importer as a first stage dealer, with all necessary information included. The duty payment, receipt of inputs, and their usage were not in dispute. Despite procedural lapses, the substantial benefit of cenvat credit could not be denied.

5. Consequently, the Tribunal ruled in favor of the appellant, stating that the cenvat credit taken based on the first stage dealer invoice, even if issued by the importer, was admissible. The impugned order was set aside, and the appeal was allowed.

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