2011 (9) TMI 822 - AT - Service Tax

Correctness of format in which the appellant has filed the appeal - manufacturer of excisable goods and paying excise duty on the goods cleared by them - assessee is also paying service tax on GTA service as recipient of the said service Held that - CENVAT credit account is a common kitty. In a case where the assessee is only paying excise duty, a dispute relating to CENVAT credit should appropriately be treated as dispute under excise matters and the appeal should be registered as excise appeal. If an assessee is only providing services and utilizing common CENVAT credit for payment of service tax alone, the appeal relating to dispute of CENVAT credit may be treated as service tax appeal. In a case where the assessee is paying excise duty as well as service tax, for administrative convenience, the appeal relating to dispute involving CENVAT credit should be treated as appeal under Central Excise.

Summary

Issues:
Correctness of format in which the appeal was filed.

Analysis:
The judgment by the Appellate Tribunal CESTAT, Bangalore, addressed the issue of the format in which the appellant filed the appeal. The assessee, a manufacturer of excisable goods, was paying excise duty on the goods cleared and service tax on GTA service as a recipient. The Cenvat Credit Rules, framed by the Central Government, provide for CENVAT credit from three distinct sources: CVD on imported inputs/capital goods, service tax on input services, and excise duty on input/capital goods. The judgment clarified that when an assessee is only paying excise duty, a dispute on CENVAT credit should be treated as an excise matter. Similarly, if an assessee is only providing services and using CENVAT credit for service tax, the appeal should be treated as a service tax appeal. However, in cases where the assessee pays both excise duty and service tax, the dispute on CENVAT credit should be categorized under Central Excise for administrative convenience.

In conclusion, the Appellate Tribunal disposed of the application, emphasizing the importance of categorizing appeals related to CENVAT credit based on the nature of taxes paid by the assessee. The judgment provided clarity on the appropriate treatment of such disputes, ensuring administrative efficiency in handling appeals related to CENVAT credit in excise and service tax matters.