2011 (6) TMI 370 - AT - Central Excise

Waiver of pre-deposit - The credit has been disallowed as it was availed on the basis of invoices addressed to the corporate office of the appellants and on services used to carry finished goods to the port of export/place of customer s choice - Assessee submits that if a fresh opportunity is extended to them, they will be able to satisfy the authorities below with reference to contract etc. that they had fulfilled the conditions set out in Circular No.97/8/2007 dt. 23.8.2007 - Held that - Since the assessees claim that now they are in a position to produce relevant contracts to establish fulfillment of the requirements for the purpose of availing credit in terms of above circular, set aside the impugned order and remit the case for fresh decision to the adjudicating authority.

Summary

Issues: Disallowance of credit on service tax; Requirement to produce documents to establish fulfillment of conditions for availing credit.

In the judgment delivered by Hon'ble Ms. JYOTI BALASUNDARAM, Vice-President of the Appellate Tribunal CESTAT, CHENNAI, the issue at hand was the disallowance of credit on service tax by the authorities below. The credit was disallowed as it was availed based on invoices addressed to the corporate office of the appellants and on services used to transport finished goods to the port of export or the customer's chosen place. The authorities held that the appellants failed to provide documentation demonstrating that the title in the goods remained with the seller until delivery in acceptable condition to the purchaser, and that the seller bore the risk of loss or damage during transit, with freight charges being an integral part of the goods' price.

The consultant for the assessee contended that given a fresh opportunity, they could satisfy the authorities with reference to contracts to prove compliance with the conditions outlined in Circular No. 97/8/2007 dated 23.8.2007. The Senior Departmental Representative (SDR) did not oppose the matter being remanded for decision by the Bench. Consequently, since the assessees claimed they could now produce relevant contracts to establish fulfillment of credit availing requirements as per the circular, the impugned order was set aside. The case was remitted for a fresh decision to the adjudicating authority, with instructions to provide a reasonable opportunity for the assessees to present their defense before passing new orders.

In conclusion, the appeal was allowed by way of remand, with the decision being dictated and pronounced in open court. The judgment emphasized the importance of producing necessary documentation to support claims for availing credit and the need for a fair opportunity for the assessees to present their case before the adjudicating authority.