CANVAT credit

[Asked by Guest]

Dear Sir,

Is GRN is mandatory for taken CANVAT Credit??

Thanks & Regards,

Sanjay Vasava

[YAGAY and SUN]

No it is not mandatory. There is no mention about this document in the CENVAT Credit Rules, 2004 as amended from time to time.

Thank you sir.

[DR.MARIAPPAN GOVINDARAJAN]

Rule 9 of CENVAT credit does not include GRN as a document for taking and utilizing CENVAT credit.

[MADAN RAHEJA]

Dear Sir,

In addition to legal position explained above, you can also rely on a decision of Tribunal in the case of

Veer-O-Metals Pvt. Ltd. Versus CCE, Bangalore-III reported at 2016 (2) TMI 867 - CESTAT BANGALORE = 2016 (331) E.L.T. 475 (Tri. - Bang.)

[Ganeshan Kalyani]

Dear Sanjay Vasava Ji,

The extract from the case law cited by expert is, 'The appellants have recorded the invoices, inputs along the available CENVAT credit in their statutory records. Also find force in the appellants contention that in the absence of the inputs in question, corresponding final products could not have been manufactured by them. The non-availability of the said documents which are not even the prescribed documents in terms of the CENVAT Credit Rules and the purpose of which is only to show the receipt of the materials at the factory gate, cannot be held to be conclusive evidence so as to arrive at a finding of the non-receipt of the goods.'

Thanks.

AI Summary

CENVAT credit: Goods Received Note not prescribed and cannot alone defeat credit if statutory records show receipt.
GRN is not listed among the prescribed documents in the CENVAT Credit Rules, 2004 and is therefore not mandatory for claiming CENVAT credit. Rule 9 does not include GRN. Absence of non-prescribed documents such as GRN cannot be treated as conclusive evidence of non-receipt where invoices, inputs and CENVAT credit are recorded in statutory books and manufacturing facts demonstrate use of the inputs.