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2013 (11) TMI 1257 - AT - Service TaxWaiver of CENVAT Credit - Availment of CENVAT Credit on the Service Tax paid on various input services used in the maintenance of capital goods - Held that - Applicant had availed CENVAT Credit at their Jamuria Unit contrary to the procedures laid down under the CENVAT Credit Rules, 2004. In these circumstances, we direct the Applicant to deposit 25% of the CENVAT Credit of Rs.62,50,685/- within 8 weeks from today and report compliance on 05.08.2013. On deposit of the said amount, the balance dues adjudged would stand waived and its recovery stayed during pendency of the Appeal - Prima facie case not in favour of assessee - Stay granted partly.
Issues: Application for waiver of CENVAT Credit and penalty under CENVAT Credit Rules, 2004
In this judgment by the Appellate Tribunal CESTAT KOLKATA, the Applicant sought waiver of CENVAT Credit of Rs.62,50,685/- and the corresponding penalty imposed under Rule 15(4) of the CENVAT Credit Rules, 2004 read with Section 78 of the Finance Act, 1994. The Applicant had availed CENVAT Credit on Service Tax paid on input services used in maintaining capital goods at a specific location, but the irregularity arose as the Head Office, on which invoices were raised, was not registered as an Input Service Distributor as required by the Service Tax Rules, 1994. The Applicant's representative offered to deposit 25% of the CENVAT Credit involved in the case. On the other hand, the Revenue argued that the procedure for availing CENVAT Credit at the Applicant's unit was irregular as Credit was not taken on invoices raised on the registered Head Office acting as an Input Service Distributor. After hearing both parties and examining the records, the Tribunal found that the Applicant had indeed availed CENVAT Credit at their unit in violation of the prescribed procedures. Consequently, the Tribunal directed the Applicant to deposit 25% of the CENVAT Credit amount within 8 weeks and report compliance by a specified date. Failure to comply would lead to the dismissal of the Appeal without further notice to the Applicant. The balance dues would be waived upon the deposit of the specified amount, and recovery would be stayed during the Appeal's pendency.
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