Availment of credit on basis of photocopies of invoices cannot be made basis to disallow credit: CESTAT

The Revenue denied Cenvat Credit to the appellant availed on the strength of Xerox copies of the purchase invoices. It was submitted that the appellant was supposed to take Cenvat credit on the original copies of the invoices, therefore, the department has rightly denied the credit availed on photocopies.

It was found that the credit was denied only on the basis that the appellant failed to produce an original copy of the invoices. There was no dispute regarding the purchase of goods and use thereof in the manufacture of the final product. The goods are entered in the purchase accounts and therefore, purchase of goods, receipt and use thereof in the manufacture of final products is not disputed. Merely because the original copy of the invoice is not available, it cannot alter the important criteria of availing of the credit when it satisfies other criteria.

Tribunal relying on various judgments, held that it is settled that availment of credit on the strength of photocopies of the invoices is just a procedural lapse and cannot be made the basis to disallow the credit. For this reason, in the absence of any evidence that the appellant had not received the goods, credit cannot be denied. Therefore, the tribunal was of the view that reasons for the denial of credit are not sustainable. Accordingly, the impugned order is set-aside and the appeal is allowed.