Refusal to submit Excise duty Gate Pass

[Asked by Guest]

One of our suppliers (Dealer of an Electric motor manufacturer in India)is refusing to submit proof of excise duty payment like ED gate pass/Invice.Can they refuse as per rules?

[CA Rachit Agarwal]

Earlier it was under the Cenvat Credit Rules, 2004 that the person availing the Cenvat Credit should ensure the payment of Excise Duty for which the Cenvat Credit is to be taken.

However the amendments has been made with regard that the person availing the Cenvat Credit should not ensure about the payment of Excise Duty.

AI Summary

Cenvat Credit verification: recipient no longer required to ensure supplier's excise duty payment before claiming credit.
A supplier's refusal to provide excise duty documents (gate pass/invoice) prompted whether a purchaser must ensure payment before claiming Cenvat Credit. Under the original Cenvat Credit Rules, 2004 the recipient had to ensure excise duty payment, but subsequent amendments remove that obligation: the person availing Cenvat Credit is no longer required to ensure the supplier has discharged excise duty as a precondition to claiming credit.