CENVAT Bill at wrong address

[Ashok Chopra]

Respected Forum,

Inputs received and consumed in the factory, but Invoice was at Head Office address. Excise officers are insisting to debit CENVAT.

What should i do?

Is there any notification/clarification or decision of any court in the matter, please provide me the same to satisfy excise officer

Thanks

[Rajesh Nathoo]

U are eligible for credit .Only thing  u do not have proper document under Rule 9 of Cenvat Credit Rules, 2004. Dept. can deny the credit as in cases on Cenvat , onus is shifted on assessees to prove credit is eligible . You have to satisfy jurisdictional Ast./Deputy Commissioner that inputs have been received in ur factory with other documents like MRN , Transport Documents , Entries in Book of Accounts etc. . It is totally in the discretion of Ast Commissioner whether SCN would be issued or not .

You need to prove with documents like Lorry Receipt, inward gate register entry etc., that the inputs were received in factory and consumed in manufacture of the FG. Further if you have only one / single manufacturing unit, then, there should not be any reason why the AC / DC will not allow the credit.

The general underlying law is substantial benefits cannot be denied on technical grounds.

But may be if not allowed by AC / DC then definitely you will get relief from CESTAT. So do not give up.

There are several case laws on this which your lawyer can help you with.

[Mahir S]

If there are more than 1 unit or other related/sister concern or inter connected units manufacturing the same product, then credit may be denied, more so if any other such unit is located in the same place wherein the Head Office is located.

AI Summary

Cenvat credit eligibility depends on proving actual receipt and consumption at the factory with documentary evidence.
Cenvat credit may be allowed despite an invoice at the head office address if the assessee proves receipt and consumption of inputs at the factory with contemporaneous documents such as material receipt notes, transport documents, inward gate register entries and accounting records; the evidentiary onus lies on the assessee and the adjudicating officer retains discretion to deny credit, with heightened scrutiny where multiple or related units exist.