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Sidharth (Querist)

18 October 2013 If the bill is not as per Rule 4A of Cenvat credit Rules, 2004, whether cenvat can be availed in such a case ?
Please provide a case law
Thank you

Suresh Ramaswamy

Suresh Ramaswamy (Expert)

18 October 2013 Rule 4A of CENVAT Credit Rules 2004 lays down the documents required to avail of CENVAT Input Credit. As per the rule within fourteen days of rendering of service or making of payment, an invoice/bill/challan preferably numbered shall be issued by the person providing taxable service. This document should contain these details: 1)Name, Address and Registration Number of
the Service Provider;
2)Name and Address of the Service Recipient;
3)Description, Classification and Value of
Taxable Service provided or to be
provided; and
4)The Service Tax Payable thereon.

Any document giving these information, which may or may not be an invoice/bill/ challan is a valid Input Document and CENVAT Credit availed cannot be denied purely on the technical ground of absence of an invoice/bill/challan.

The CESTAT in the case of CCE vs. ENGINE VALVES LIMITED [(1990)48 ELT 287] gave a judgement pertaining to MODVAT Rules and the res judicata applies to CENVAT Rules also. "HELD- MODVAT Rules have to read liberally and not literally".

CESTAT Delhi in the case of DSM ANTI- INFECTIVE PRIVATE LIMITED vs.CCE[(2004)165 ELT 69 (Tri - DELHI)] wherein it was "HELD that credit is not to be denied for not following procedure, if duty paying documents are available."

Thus even a letter from the party stating their address and STC addressed to you specifying the service, value and Service Tax amount should suffice. Additionally you may ask the party to give you a copy of the paid challan for your records.

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