2018 (3) TMI 1420 – CESTAT MUMBAI – TMI – VCES Scheme – time limitation – CENVAT credit – denial on the ground that such discharge certificate is not one of the specified documents for the purpose of availment of credit under rule 9 of Cenvat Credit Rules, 2004 and as such credit cannot be allowed to them – Held that: – Having held that the said certificate was a proper document, the appellate authority should have allowed the credit instead of rejecting the part on the ground of time bar.
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If the assessee’s tax credit is on the basis of challan itself, the concurrence of the Revenue is not involved and it can be alleged that he deposited the tax and took the credit on his own without waiting for the final order of the acceptance by the proper authority. As such, it was necessary, under the scheme, to receive the discharge certificate before availing the credit, in which case, even limitation would not get involved.
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Appeal allowed – decided in favor of appellant. – E/87676/
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roper officer. 2. In the present case, the appellants applied for discharge of dues of such taxes under the scheme and their tax liability was scrutinized and ultimately the tax deposited by the appellant was accepted by the Revenue authorities and discharge certificate was issued. Based upon the said discharge certificate they availed CENVAT credit of the tax was paid by them. 3. Proceedings were initiated against them by issuing show-cause notice seeking to deny CENVAT credit on the ground that such discharge certificate is not one of the specified documents for the purpose of availment of credit under rule 9 of Cenvat Credit Rules, 2004 and as such credit cannot be allowed to them. The show-cause notice culminated into an order passed by the Deputy Commissioner denying availment of such credit on such ground. 4. On appeal against the above order, Commissioner (Appeals) agreed with the assessee that the said discharge certificate issued under VCES Scheme is an admissible document for
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authority should have allowed the credit instead of rejecting the part on the ground of time bar. In any case and in any view of the matter I find that this specialised scheme was introduced by the Government of India for a limited period where the assessee is required to deposit duty and apply to the Revenue who would issue discharge certificate, on being satisfied about the quantum of taxes so paid by an assessee. If the assessee s tax credit is on the basis of challan itself, the concurrence of the Revenue is not involved and it can be alleged that he deposited the tax and took the credit on his own without waiting for the final order of the acceptance by the proper authority. As such, it was necessary, under the scheme, to receive the discharge certificate before availing the credit, in which case, even limitation would not get involved. 4.2 In view of the foregoing, I set aside the impugned order and allow the appeal with consequential relief to the appellant. (Dictated & Pron
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