Cenvat Credit on documents

[ASHOK AMIN]

Dear Experts,

A manufacturer maintains pre-printed invoice in five copies - Original for buyer, duplicate for transporter, triplicate for assessee, fourth copy for accounts and fifth copy as extra copy. While dispatching the goods the manufacturer encloses the original, duplicate & extra copy, whereas, the third & fourth copy are retained by the manufacturer. Now, the buyer (also a manufacturer) misplaces all the copies (original,duplicate & extra copy) in their factory premises which is not traceable. Can the buyer avail cenvat credit on the photo copy of the invoice duly signed as "certified true copy". If not, then what is the solution since there is no such provision available in the law at present.

[DR.MARIAPPAN GOVINDARAJAN]

Yes, credit can be taken on the zerox copy of the voucher based on the circumstances of this case.

[Rajagopalan Ranganathan]

Sir,

Rule 9 (1) of Cenvat Credit Rules, 2004 stipulates that "the CENVAT credit shall be taken by the manufacturer or the provider of output service or input service distributor, as the case may be, on the basis of any of the following documents, namely :-

(a) an invoice issued by-

(i) a manufacturer or a service provider for clearance of -

(I) inputs or capital goods from his factory or depot or from the premises of the consignment agent of the said manufacturer or from any other premises from where the goods are sold by or on behalf of the said manufacturer;

(II) inputs or capital goods as such.

It does not stipulate that the credit shall be taken on the basis of a particular copy of the invoice. If you customer had lost the original, duplicate and extra copy of the invoices, then you can provide either the triplicate or quadruplicate copy of the invoice available with you and on the basis of such invoice your buyer can take the credit. However your buyer has to satisfy his Range officer about the loss of copies of invoices sent by you with evidence.

[ASHOK AMIN]

Thank you very much sir.

[Suryanarayana Sathineni]

Dear Friends,

As an abundant caution it is advised to inform the situation under which the copies of invoices are misplaced to the Jurisdictional Excise authorities together with copy of FIR filed in the police station about the missing of the invoice copies while you intended to take the credit on the xerox copy.

Best Regards

Suryanarayana

[KASTURI SETHI]

Sh.Ashok Amin Ji,

There is no such provision in Cenvat Credit Rules,2004 to allow credit on photocopy of the document. However, if FIR is lodged with Police and proof for proper accountal in the books of accounts is produced, there is hope for getting relief from the Appellate Authority only i.e. after litigation only.

 

 

[ASHOK AMIN]

Thanks to all the expert advise. Now the matter is clear

AI Summary

Cenvat credit on invoices: photocopies may be accepted if loss is evidenced and the tax officer is satisfied.
Cenvat credit may be taken on the basis of the invoice copies recognized by the Cenvat Credit Rules, 2004; the Rules do not mandate a specific numbered copy. A photocopy or certified true copy may be accepted depending on circumstances if the buyer can satisfy the Range officer about loss of original copies, produce corroborative evidence such as an FIR and accounting records, or rely on copies retained by the supplier.