Rule 9 – Documents and accounts :
(1) Eligible documents: Sub-rule (1) allows manufacturer or the provider of output service or input service distributor to avail CENVAT credit on the basis of any of the following documents:
| Nature of document | |
| 1 | Invoice issued by a manufacturer for clearance of inputs or capital goods from his factory or depot or from the premises of his consignment agent or from any other premises from where the goods are sold |
| 2 | Invoice issued by a manufacturer for clearance of inputs or capital goods as such |
| 3 | Invoice issued by an importer |
| 4 | Invoice issued by an importer from his depot or from the premises of his consignment agent if the said depot or the premises are registered under central excise. |
| 5 | Invoice issued by a first stage dealer or a second stage dealer under Central Excise Rules, 2002. |
| 6 | Bill of entry. |
| 7 | A supplementary invoice issued by a manufacturer or importer of inputs or capital goods where additional amount of excise duty or CVD has been paid except in a case where such payment was on account of fraud, suppression of facts etc. [A supplementary invoice includes challan or any other similar document evidencing payment of additional duty leviable under section 3 of the Customs Tariff Act.] |
| 8 | A supplementary invoice, bill or challan issued by a provider of output service except where the additional amount of tax became recoverable from the service provider on account of fraud, suppression of facts etc. |
| 9 | Certificate issued by an appraiser of customs in respect of goods imported through a Foreign Post Office. |
| 10 | A challan evidencing payment of service tax, by the service recipient as the person liable to pay service tax |
| 11 | An invoice, a bill or challan issued by a provider of input service |
| 12 | An invoice, bill or challan issued by an input service distributor under rule 4A of the Service Tax Rules, 1994. |
Points to be noted:
(i) Credit of special CVD (additional duty of customs levied under section 3(5) of the Customs Tariff Act, 1975) shall not be allowed if the invoice or the supplementary invoice, as the case may be, bears an indication to the effect that no credit of the said additional duty shall be admissible.
(ii) Since, rule 9 states that credit can be taken on the basis of an invoice issued by a manufacturer/importer/dealer/service provider; credit can be availed on the basis of any copy of the invoice viz., ORIGINAL FOR BUYER or DUPLICATE FOR TRANSPORTER or TRIPLICATE FOR ASSESSEE.
(iii) A supplementary invoice is issued by the supplier-manufacturer/service provider when he pays additional duty/service tax on inputs or capital goods/input services supplied/provided by him. The additional payment of duty/tax can be on account of reasons like any demand, audit objection, cost escalation granted by buyer etc.
(2) Contents of the documents: Sub-rule (2) provides that the CENVAT credit can be taken only if all the particulars as prescribed under the Central Excise Rules, 2002 or the Service Tax Rules, 1994 are available on the invoice or other duty-paying document.
However, the Deputy/Assistant Commissioner may allow the CENVAT credit even if the said document does not contain all the particulars but the following two conditions are satisfied:
(a) The document contains the following information:
• details of duty or service tax payable,
• description of the goods or taxable service,
• assessable value,
• central excise/service tax registration number of the person issuing the invoice
• name and address of the factory or warehouse or premises of first or second stage dealers or provider of output service, and
(b) The Deputy/Assistant Commissioner is satisfied that the:
(i) goods or services covered by the said document have been received and
(ii) accounted for in the books of the account of the receiver.
(3) Credit on goods purchased from first stage dealer/ second stage dealer/ registered importer: Sub-rule (4) lays down that the CENVAT credit in respect of inputs or capital goods purchased from a first stage dealer or second stage dealer shall be allowed only if-
• such first stage dealer/second stage dealer has maintained records indicating the fact that the input or capital goods was supplied from the stock on which duty was paid by the producer of such input or capital goods; and
• only an amount of such duty on pro rata basis has been indicated in the invoice issued by him.
The provisions of this sub-rule are also applicable in case of an importer who issues an invoice on which CENVAT credit can be taken.
(4) Records for inputs and capital goods: As per sub-rule (5), the manufacturer of final products or the provider of output service has to maintain proper records for the-
• receipt,
• disposal,
• consumption; and
• inventory
of the input and capital goods.
The records should have the relevant information regarding the-
• value,
• duty paid,
• CENVAT credit taken and utilized, and
• the person from whom the input or capital goods have been procured.
The burden of proof regarding the admissibility of the CENVAT credit shall lie upon the manufacturer or provider of output service taking such credit.
(5) Records for input service: Sub-rule (6) specifies that the manufacturer of final products or the provider of output service has to maintain proper records for the receipt and consumption of the input services.
The records should have the relevant information regarding the value, tax paid, CENVAT credit taken and utilized and the person from whom the input service has been procured. The burden of proof regarding the admissibility of the CENVAT credit shall lie upon the manufacturer or provider of output service taking such credit.
(6) CENVAT credit returns: The provisions with regard to filing of CENVAT credit returns are explained in sub-rules (7) to (11). Returns are required to be filed by (i) manufacturer, (ii) first stage dealer or a second stage dealer, (iii) output service provider and (iv) input service distributor in the manner described below:
(i) Monthly/Quarterly return for a manufacturer: The manufacturer of final products shall submit within ten days from the close of each month to the Superintendent of Central Excise, a monthly return in Form ER-1.
However, in case of SSI units a quarterly return in Form ER-3 is filed within ten days after the close of the quarter to which the return relates [Sub-rule 7].
(ii) Quarterly return for a first stage dealer/ second stage dealer/ registered importer: A first stage dealer or a second stage dealer or a registered importer, as the case may be, shall submit within fifteen days from the close of each quarter of a year to the Superintendent of Central Excise, a return in the form specified, by notification, by the Board [Sub-rule (8)].
(iii) Half-yearly return for an output service provider: Sub-rule (9) lays down that the provider of output service availing CENVAT credit, shall submit a half yearly return in Form ST-3 to the Superintendent of Central Excise, by the end of the month following the particular quarter or half year.
(iv) Half-yearly return for an input service distributor: Sub-rule (10) prescribes that the input service distributor, shall submit a half yearly return in Form ST-3, giving the details of credit received and distributed during the said half year, to the jurisdictional Superintendent of Central Excise, by the end of the month following the half year.
Note: All the above returns have to be filed electronically.
(7) Revision of return: Sub-rule (11) allows the output service provider or the input service distributor to rectify mistakes or omission and file revised return within 60 days from the date of filing of original return.