2020 (7) TMI 54

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....al Balance, Advice of Transfer/Transfer Advice Note are valid documents as specified in Rule 9 of Cenvat Credit Rules, 2004. The department was aggrieved against the dropping of the demand of Rs. 4,25,67,073/-. 2. Briefly stated the facts of the case are that the respondent assessee namely M/s.Bharat Sanchar Nigam Limited (M/s.BSNL) are engaged in the business of providing 'telephone services'. They had a system of procuring capital goods necessary for providing their services centrally by a designated authority being NE-II Circle of M/s.BSNL for all the Secondary Switching Areas (SSA) such as Nagaland, Manipur and Arunachal Pradesh. The Designated Authority was Controller of Telecom Stores, Depots, North-Eastern II Circle, Dimapur. Afte....

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....it. The only procedural lapse was that the procuring office did not get registered as a dealer as per Rule 9 of Central Excise Rules 2002 which is made applicable for the purposes of Cenvat Credit Rules, 2004. However, necessary documentation has been done inasmuch as all the invoices against which procurements were made are available and also Transfer Advice (TA) has been communicated to the concerned office where credits were taken. He further submits that since the fact of procurement of capital goods is not disputed and the duty paid thereon is also not disputed and the use of the capital goods in providing taxable services is also not disputed, the adjudicating authority has rightly dropped the proceedings as proposed in the show cause....

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....Rs. 1,82,33,946.00 only which included the unavailed balance amount of Rs. 23,41,689.00 of previous year (2004-05). Having the unavailed balance amount of Rs. 23,41,689.00 been excluded, remaining amount comes to Rs. 1,58,92257.00 which comprised Cenvat credit of Rs. 94,45,283.00 on capital goods and Customs duty of Rs. 64,46,974.00 on imported goods from Nortel Network. Further Rs. 94,45,283.00 also included Edu. Cess of Rs. 32,317.00 on capital goods which had been wrongly debited to Cenvat credit head instead of Edu. Cess head. 4.3 From perusal of the copies of Invoices it is evident that during the year 2005-06 the assessee had taken Cenvat credit of Rs. 94,12,966.00 on Capital goods and Cenvat credit of Rs. 64,46,974.00 on imp....

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....,24,66,759.00 as alleged in the notice or Rs. 64,46,974.00 which the BSNL has contended it to be. I find that the basis for the calculation of the amount involved or the documents based upon for calculation has not been provided by the investigation and since there is nothing on record to challenge the submissions of BSNL and since BSNL's contention is supported by the figures shown in the Audited Trial Balance, hence I am inclined to accept the submission of BSNL. Therefore I find the amount of Cenvat credit of Rs. 64,46,974.00 taken wrongfully on Customs duty is liable to be denied and recovered from them with due interest." 7. We find that the existence of original invoice and its genuineness is not disputed by Revenue. In fact such d....