2012 (9) TMI 168 - AT - Service Tax

Disallowance of cenvat credit of service tax paid on the invoices issued by Input Service Distributor(ISD) - Held that - As appellant has clearly indicated in the submissions to adjudicating authority that they are enclosing 900 copies of the invoices which are co-related with the service distributed to them by ISD against which the adjudicating authority has recorded his finding that appellant has not produced any evidence co-relating the service distributed, thus this issue needs to be reconsidered after calling for the invoices in connection with the service tax credit distributed by the ISD - in favour of assessee by way of remand.

Summary

Issues:
Waiver of pre-deposit of service tax, eligibility to avail cenvat credit, penalty imposition, production of documents for service distribution.

Analysis:

The judgment deals with stay petitions filed seeking the waiver of pre-deposit of service tax confirmed by the adjudicating authority, along with interest and penalties. The issue revolves around the appellant's eligibility to avail cenvat credit of service tax paid on invoices issued by an Input Service Distributor (ISD). The penalty imposed includes an equal amount on the company and a personal penalty on an individual. The Tribunal, after hearing both sides, decides to dispose of the appeals itself due to the narrow compass of the issue. The applications for waiver of pre-deposit are allowed, and the appeals are taken up for disposal.

The Counsel highlights the submissions made by the appellant regarding the photocopies of invoices provided by the ISD for service distribution. The adjudicating authority's finding focuses on the non-production of documents correlating the distributed service, despite the appellant's claim of submitting 900 copies of invoices related to the service. The Tribunal observes discrepancies in the adjudicating authority's conclusion and directs a reconsideration. It emphasizes the need for the authority to review the issue by examining the invoices connected to the service tax credit distributed by the ISD. The judgment sets aside the impugned order, remits the matters back to the adjudicating authority for a fresh consideration, and stresses adherence to the principles of natural justice. The decision allows the appeals by way of remand, keeping all issues open for further examination.