Railway Receipts & STTG Certificates Are Valid Documents For Availing CENVAT Credit Before 27.08.2014: CESTAT Kolkata

The Kolkata Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) held that railway receipts and STTG (Service Tax Certificate for Transportation of Goods) Certificates are valid documents for taking CENVAT (Central Value Added Tax) Credit even prior to 27.08.2014. R. Muralidhar (Judicial Member) and K. Anpazhakan (Technical Member) opined that the STTG Certificates issued by the Railways have been prescribed as a document for availing credit with effect from 27.08.2014. However, railway receipts, which contain all details as prescribed under Rule 9 of the CENVAT Credit Rules, 2004, continue to be a relevant document for the availment of credit prior to and after 27.08.2014 also. In the case at hand, the assessee/appellant was engaged in manufacturing various types of paper and paperboard, etc., falling under Chapter 48 of the Central Excise Tariff Act. 1985. Proceedings were initiated against the assessee by way of issuing a show cause notice, wherein it has been alleged that the assessee has availed and utilised CENVAT credit amounting to Rs. 49,16,972/- on Input service on railway receipts and Service Tax Certificate for Transportation of Goods (STTG Certificate) for the period prior to 27.08.2014. The show cause notice was adjudicated wherein the adjudicating authority has disallowed the CENVAT Credit availed by the assessee on the basis of Railway receipts and STTG Certificates for the period prior to 27.08.2014. The assessee filed an appeal against the order passed by the adjudicating authority, which was dismissed. The Revenue took the view that prior to 27.08.2014, the STTG Certificate issued by Indian Railways, along with the photocopies of the railway receipt mentioned in the STTG Certificate, were not valid documents eligible for taking CENVAT Credit. It was alleged that input service credit on transportation of goods so availed by the assessee on the basis of Railway receipts and STTG Certificates issued by Indian Railways, for the period prior to 27.08.2014, is inadmissible. The assessee argued that for the period between 01.12.2012 to 27.08.2014, the railway receipts containing all the relevant details as required under Rule 9(1) of CENVAT Credit Rules, 2004, were the documents based on which CENVAT Credit can be availed. The bench stated that the STTG certificate is an additional document prescribed to allow the CENVAT Credit. That does not mean that railway receipts or STTG certificates cannot be considered as a relevant document for availing CENVAT Credit. The Tribunal observed that even after the introduction of sub-rule (fa) in Rule 9 (1) of the CENVAT Credit Rules, 2004, railway receipts containing all the relevant factual details continue to be a relevant document for the availment of credit. The STTG Certificate issued prior to 27.08.2014 was also a valid document for availing CENVAT Credit, as the same contains all details as prescribed under Rule 9(1) of the CENVAT Credit Rules, 2004, stated the bench. In view of the above, the Tribunal allowed credit availed by the assessee on the basis of railway receipts and STTG certificates for the period prior to 27.08.2014. Case Title: M/s. ITC Limited v. Commissioner of C.G.S.T. and Central Excise Case Number: Excise Appeal No. 77011 of 2018 Counsel for Appellant/ Assessee: Arnab Chakraborty Counsel for Respondent/ Department: S.K. Dikshit Click Here To Read/Download Order

Railway Receipts & STTG Certificates Are Valid Documents For Availing CENVAT Credit Before 27.08.2014: CESTAT Kolkata

Mehak Dhiman

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