Case Law Details

Case Name : Puja Ferro Alloys Ltd. Vs. The Commissioner of Central Excise, Goa (CESTAT Mumbai - Court No. II)
Appeal Number : Appeal No.E/1236/07, Appln.No.E/S/1411/07
Date of Judgement/Order : 15/11/2007
Related Assessment Year :
Courts : All CESTAT (608) CESTAT Mumbai (126)

TR-6 challan is the most primary document evidencing payment of duty/tax. No doubt the TR-6 challan was not included in the list of specified documents. It was included by virtue of Notification No.28/2005-CE(NT) dated 7/6/2005. I find that this is an inadvertent omission, which was rectified by issuing the said Notification. This is so because any duty payment documents is related to, and based on TR-6 challan which  is the source document. Similar view has been taken up by the Hon’ble Tribunal in the case of National Organics Chemical India Ltd., reported in 2004 (178) ELT 331  (Tri.). The  appellant’s case is squarely covered  by this judgement. I, therefore hold that disallowance of Cenvat credit is not correct. Consequently interest and penalty also do not sustain. Order-in-original is liable to be set aside.

Revenue in the Memo of appeal has again reiterated the same stand. Shri Prakash Shah, Ld. Advocate appearing for the respondents submit that during the relevant time there was no list of specified documents on the basis of which credit could be taken. I have also heard Shri C.S.Biradar and Shri SR Savant appearing for other appellants. As such, the appellate authority was right in holding TR-6 challan as the basis for availing service tax credit.

 I agree with the reason adopted by the Commissioner (Appeals). The revenue in their appeal has no where contended as to what was the specified document for availing credit during the relevant time. If no document was mentioned, TR-6 challan has to be considered as the proper document reflecting payment of duties. Further it is also not the revenue’s case that the service tax was not paid by the respondents or they were otherwise not entitled to the credit of the same.

IN THE CUSTOMS EXCISE & SERVICE TAX APPELLATE TRIBUNAL

WEST ZONAL BENCH AT MUMBAI

COURT No.II

APPEAL No.E/1236/07

Appln.No.E/S/1411/07

(Arising out of Order-in-Appeal No.GOA/CEX/SB/31/2007 dated 27/03/2007  passed by Commissioner of Central Excise & Customs (Appeals), Goa)

Puja Ferro Alloys Ltd.,                     

 Vs.

 The Commissioner of Central Excise, Goa

Date of decision    :   15/11/2007

 F I N A L   O R D E R 

Per: Shri M.V.Ravindran,  Member (Judicial)

 1.  This stay application and appeal is directed  against the order-in-appeal No. OA/CEX/SB/31/2007 dated 27/03/2007.

 2. After hearing both sides, it is seen that the appeal itself can be disposed off.  Hence, the application for waiver of pre-deposit of amounts involved  is allowed and the appeal itself  is taken up for disposal.

 3. The issue involved in this case is regarding the admissibility of Cenvat credit availed during the period  01/01/2005 to 15/06/2005 on the basis of TR-6 challans, which were used for payment of Service Tax on the services received from GTA.  It is the case of the revenue that prior to 16/06/2005 the TR-6 challan was not a specified document for availing Cenvat credit.

 4. It is seen that the issue involved in this case is no more res integra.  The Tribunal vide its final order No.A/1358 to 1361/WZB/MUM/2007 dated 25/09/2007 held as under:-

“Being aggrieved with the order passed by the Commissioner (Appeals) Revenue has filed the present appeal. The dispute relates in availing service tax credit in respect of service tax paid on goods transport agency services.  There is no dispute on the legal issue that the respondents are entitled to take the said credit. However, revenue’s objection was that the same has been availed on the basis of TR-6 challan, which was not a prescribed document at the relevant time and was introduced in the list of specified documents only with effect from 16/06/2005  by Notification No.28/2005-CE(NT) dated 07/06/2005.

The Commissioner (Appeals) vide his impugned order has held the said documents to be proper for the purpose of availing credit by observing as under:-

 “TR-6 challan is the most primary document evidencing payment of duty/tax. No doubt the TR-6 challan was not included in the list of specified documents. It was included by virtue of Notification No.28/2005-CE(NT) dated 7/6/2005. I find that this is an inadvertent omission, which was rectified by issuing the said Notification. This is so because any duty payment documents is related to, and based on TR-6 challan which  is the source document. Similar view has been taken up by the Hon’ble Tribunal in the case of National Organics Chemical India Ltd., reported in 2004 (178) ELT 331  (Tri.). The  appellant’s case is squarely covered  by this judgement. I, therefore hold that disallowance of Cenvat credit is not correct. Consequently interest and penalty also do not sustain. Order-in-original is liable to be set aside.

Revenue in the Memo of appeal has again reiterated the same stand. Shri Prakash Shah, Ld. Advocate appearing for the respondents submit that during the relevant time there was no list of specified documents on the basis of which credit could be taken. I have also heard Shri C.S.Biradar and Shri SR Savant appearing for other appellants. As such, the appellate authority was right in holding TR-6 challan as the basis for availing service tax credit.

 I agree with the reason adopted by the Commissioner (Appeals). The revenue in their appeal has no where contended as to what was the specified document for availing credit during the relevant time. If no document was mentioned, TR-6 challan has to be considered as the proper document reflecting payment of duties. Further it is also not the revenue’s case that the service tax was not paid by the respondents or they were otherwise not entitled to the credit of the same”.

5.         It can be seen from the above reproduced portion of the order of the Tribunal that the issue is squarely covered in favour of the appellants. Accordingly respectfully following the decision of the Tribunal, the appeal is allowed and the impugned order is set aside.

(Dictated in Court)

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0 responses to “Cenvat credit availed during the period 01/01/2005 to 15/06/2005 on the basis of TR-6 challans, which were used for payment of Service Tax on the services received from GTA, is admissible”

  1. R.Balasubrahmani says:

    Please clarify, can cenvat credit be diallowed for the reason of absence of Service Provider’s Registration number on the Invoice.?

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