Denial of Input tax credit on the ground that invoice bears handwritten serial number is Correct ?

Issue involved:

Whether denial of Input tax credit by adjudicating officer is correct or not, on the ground that invoice bears handwritten serial number: CESTAT

Krupa Trading Company Vs C.C.E. & S.T. (CESTAT Ahmadabad)

Fact of the case:

In present case, Cenvat credit was disallowed with interest and penalty on the ground that Invoice in respect of Input service on which Cenvat credit was availed, are bearing handwritten serial number

Appellants: The revenue department

Respondents: The Assessee

On the first appeal, the authority allowed the claims of the respondents and held that as per Rules 11 of Central Excise Rules 2002, it is clear that invoice should bear serial number and it nowhere prescribe that invoice should bear pre-printed serial number.

The Department filed an appeal against the said order before the Tribunal.

Decision of the Case

While allowing the plea of the appellants, the Tribunal observed that it is prima facie clear that there is no dispute as regard genuineness of the invoices and payment of service tax against said invoices. However, the Learned Commissioner even after considering the aforesaid factual position proceeded to disallow the credit solely on the ground that the invoices do not bear the Pre-printed Serial Number and the Registration Number is not mention in the invoice or it is over written.

The reason for denial of the Cenvat Credit in the above decision of the Tribunal and in the present case is absolutely identical. Since the issue in the appellant’s own case has already been decided vide order dated 07/02/2020, there is nothing more to discuss on the issue in hand. Accordingly, following the decision of this bench in above cited order dated 07/02/2020, the impugned order is set aside and appeal is allowed.

Therefore we are of the view that invoice should be serially numbered irrespective whether its hand written or pre-printed.

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June 2021