PSU wins appeal on CENVAT credit availment using Advice of Transfer Debit Bills under Rule 9

CESTAT Kolkata allowed the appeal of a Public Sector Undertaking regarding CENVAT credit availment on "Advice of Transfer Debit Bills" issued by Head Quarters. The tribunal held that such documents containing all details per Rule 9 of CENVAT Credit Rules, 2004 are valid for credit availment, following precedent. Extended limitation period was deemed non-invokable as no malafide intention existed for a PSU. The demand and penalty were set aside, with appellant succeeding on both merits and limitation grounds.

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The Appellate Tribunal (CESTAT Kolkata) allowed the appellant, a Public Sector Undertaking engaged in telecommunication services, to avail Cenvat credit on "Advice of Transfer Debit Bills" issued by their Head Quarters. The Tribunal held that such bills, containing all details as prescribed under Rule 9 of the Cenvat Credit Rules, 2004, are valid documents for credit, following the appellant's own precedent (2024 (12) TMI 883-CESTAT Allahabad). The Tribunal further ruled that the extended period of limitation is not invokable against a Public Sector Undertaking absent malafide intent. Consequently, the impugned order denying credit and imposing penalty was set aside, with the Tribunal stating that "no demand is sustainable against the appellant and no penalty can be imposed." The appeal was allowed with consequential relief.

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