2026-VIL-1387-CESTAT-BLR-CE
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  2. 2026-VIL-1387-CESTAT-BLR-CE

CENTRAL EXCISE CESTAT Cases

Central Excise – CENVAT Credit on Proforma Invoice – Whether CENVAT credit can be taken on Proforma Invoice which does not fall within specified documents under Rule 9 of CENVAT Credit Rules, 2004 – HELD – When all documents are harmoniously read, there is no dispute that relevant Service Tax has been properly paid by service provider and same has been taken as CENVAT credit by Appellant and credit has also been reflected in ER-1 Return. As long as factual details and provision of service is not in dispute and basic details of Service Tax Registration, service rendered details and Service Tax amount are reflected in invoices, CENVAT credit cannot be denied - Rule 9 of CCR, 2004 clarifies that CENVAT credit on documents as mentioned in Sub Rule (1) shall be available if and only if all particulars as prescribed under respective statute are contained in said documents. Conjoint reading of rules makes it clear that it is not merely specific documents in sub rule but any similar document which may provide all statutory particulars that same shall be admissible for permitting availment of CENVAT credit – The documents required under Rule 9 are not confined to merely invoices but may be any documents like bill or challan as issued in terms of applicable rules. Rule specifies amount of information as required in particular documents for availment of CENVAT credit and any such documents as required can be document under Rule 9 for entitlement of availing CENVAT credit. There is no denial that entire information as required under Rule 9 was available in Proforma invoices on which credit was availed by Appellant. Denial of availment of CENVAT credit on Proforma invoices is absolutely wrong and set aside – The appeal is allowed - CENVAT Credit – Limitation period for issuing Show Cause Notice – Appellant took CENVAT credit in March 2011 and reflected same in ER-1 Return for that month – Department conducted audit during which alleged contravention was quantified – Whether SCN issued after more than three years from taking of credit without further investigation or verification is barred by limitation – HELD – Appellant had taken credit in March 2011 and reflected same in ER-1 Return. Even under self-assessment regime, Tribunal and High Courts have been consistently holding that scrutiny of Return is still to be undertaken by Range Officials. There is nothing to show that any query was raised by Range Officials after taking up ER-1 Return for scrutiny – Further, audit was conducted in 2012 as evident from Audit Report and alleged contravention and Service Tax taken as CENVAT credit has already been quantified in Report itself. However, Department has taken more than three years to issue SCN while there is no evidence that any further investigation or verification was taken up in this case - When no objection was raised by Range Officials during normal course of scrutiny and credit was already quantified during audit in 2012 but SCN was issued only after three years gap, the Department has lost the opportunity to proceed within normal limitation period and cannot rely on extended period of limitation – The entire demand is set aside on account of time bar
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