Cenvat Credit on Digital Signed Invoice

[POLYPLEX CORPORATIONLTD]

Dear Sir

Please suggest - Can we take credit on digital signed invoices

If yes, Could any document would taken from Vendor prior to taken credit

[Rajagopalan Ranganathan]

Sir,

Rule 11 (8) and (9)of Central Excise Rules, 2002 stipulates that "an invoice issued under this rule by a manufacturer may be authenticated by means of a digital signature:

Provided that where the duplicate copy of the invoice meant for transporter is digitally signed, a hard copy of the duplicate copy of the invoice meant for transporter ¹²[***] shall be used for transport of goods.

(9) The Board may, by notification, specify the conditions, safeguards and procedure to be followed by an assessee using digitally signed invoice.

Explanation. - For the purposes of rule 10 and this rule, the expressions, “authenticate”, “digital signature” and “electronic form” shall have the respective meanings as assigned to them in the Information Technology Act, 2000 (21 of 2000).

Please see Notification No. 18/2015-CE (NT) dated 6.7.2015 for the conditions, safeguards and procedure to be followed by ab assessee using digitally signed invoice.

[Suryanarayana Sathineni]

I fully agree with the clarification given by Shri. Rajagopalan Ji.

Best Regards

Suryanarayana

[Ganeshan Kalyani]

Sir, yes the credit can be taken on digitally signed documents.

Please reframe your second para, I could not get what you are trying to ask us. Thanks.

[KASTURI SETHI]

I also could not understand the message of query. Will the questioner like to redraft ? Nothing should remain unanswered.

[Rajagopalan Ranganathan]

Sir,

What I under stand by your second query, that is, "Could any document taken from vendor prior to taken credit" whether credit can be taken if any document received from vendor purporting to be an invoice, my answer is no. Credit can be taken only on receipt of invoice along with input materials. If invoice alone received prior to receipt of inputs you can the credit only on receipt of the inputs.

As per rule 11 (2) of Central Excise Rules, 2002 " the invoice shall be serially numbered and ¹[shall contain the registration number, address of the concerned Central Excise division,] name of the consignee, description, classification, time and date of removal, mode of transport and vehicle registration number, rate of duty, quantity and value, of goods and the duty payable thereon. if any document issued by the vensor complies with the above rule then only it will be a valid document on the basis of which you can take the credit.

[POLYPLEX CORPORATIONLTD]

Could any document would taken from Vendor prior to taken credit means whether we take the photocopy of the intimation given to Excise Authority by vendor for approving the digital signature.

[POLYPLEX CORPORATIONLTD]

thanks sir for your valuable opnioun.

[Rajagopalan Ranganathan]

Sir,

Para 2 of Notification 18/2015-CE (NT) dated 6.7.2015 stipulates that-

(i) Every assessee proposing to use digital signatures shall intimate the following details to the jurisdictional Deputy Commissioner or Assistant Commissioner of Central Excise, at least fifteen days in advance:-

a) name, e-mail id, office address and designation of the person authorised to use the digital signature certificate;

b) name of the Certifying Authority;

c) date of issue of digital certificate and validity of the digital signature with a copy of the certificate issued by the Certifying Authority along with the complete address of the said Authority:

Provided that in case of any change in the details submitted to the jurisdictional Deputy Commissioner or Assistant Commissioner, complete details shall be submitted afresh within fifteen days of such change.

(ii) Every assessee already using digital signature shall intimate to the jurisdictional Deputy Commissioner or Assistant Commissioner of Central Excise the above details within fifteen days of issue of this notification.

Once you supplier of inputs filed the above referred declaration to his jurisdictional Assistant/Deputy Commissioner, then he can issue digitally signed invoices and on the basis of which you can take credit. No prior approval from the said authority is required for issuing digitally signed invoice.

AI Summary

Digital signature on invoices: allows cenvat credit where supplier complies with notification conditions and invoice accompanies inputs. Cenvat credit is allowable on digitally signed invoices that comply with statutory invoice content and Notification conditions; a hard copy of a digitally signed duplicate for the transporter must be used when required. Notification 18/2015 prescribes intimation of authorised signatory and certifying authority details to the jurisdictional Deputy/Assistant Commissioner and updating any changes; once the supplier files this intimation, digitally signed invoices can be issued without separate approval. Credit is available only on receipt of the invoice together with the input goods, not on invoice alone prior to receipt of inputs.