CENVAT Credit - Only on Duplicate Copy of Invoice?
AS per Rule 9(1)(a)(i) of the CENVAT Credit Rules, an invoice issued by a manufacturer is a document on the basis of which Cenvat Credit can be taken.
As per Rule 11(3) of the Central Excise Rules, the invoice shall be prepared in triplicate in the following manner, namely:-
(i) the original copy being marked as ORIGINAL FOR BUYER;
(ii) the duplicate copy being marked as DUPLICATE FOR TRANSPORTER;
(iii) the triplicate copy being marked as TRIPLICATE FOR ASSESSEE.
Now, is there any restriction on which copy of the invoice can be used for taking Cenvat Credit?
This question was raised in the meeting of the Regional Advisory Committee of the Chief Commissioner of Central Excise Chennai Zone held on 12.07.2016.
The question was:
Whether the duplicate copy (digitally signed) accompanying the transportation alone is the document for credit availment or credit is possible based on invoices through the digital form itself .
The Department replied:
Rule 9 of the Cenvat Credit Rules, 2004 prescribe documents for the purposes of taking Cenvat Credit which includes invoice issued for clearance of goods. Further, Rule 11(3) of Central Excise Rules, 2002 prescribes that invoice for removal of goods shall be prepared in triplicate and duplicate copy shall be marked as "Duplicate for Transporter".
Further, Rule 4(1) of CCR stipulates that credit can be taken on receipt of inputs into the factory or the premises of job worker. It is clear from the harmonious reading of the above provisions that credit can be taken only on the basis of duplicate copy of invoice and issuing digital invoice has not altered the above provisions .
Is the assessee required to go through the exercise of harmonious reading of several provisions of the Law to determine the copy of invoice on which he can take credit?
A harmonious reading would also lead to a conclusion that the ‘duplicate copy' is meant only for the transporter and has nothing to do with taking credit. Now whose harmonious reading would prevail?
Will the Board clarify that there is no such provision in law that credit can be taken only on the ‘duplicate copy' of the invoice?
Board should also instruct the Chief Commissioners that they should not confuse the trade and the field with such wrong clarifications. At least the Board should be taken into confidence before such important (and wrong) clarifications are given.