9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2013 (12) TMI 559 - AT - Service TaxService tax liability - Circular No. 962/05/2012-CX., dated 28-3-2012 of the C.B.E. & C - Whether the debit of CENVAT credit available as on 29-6-2010 in the CENVAT credit register of the appellant towards payment of Service tax for the period from November to December, 2009 is legally in order - Held that - appellant gets legitimate support from the above Circular to the proposition that CENVAT credit which accrued to the appellant on 29-6-2010 could be utilized for payment of arrears of Service tax for the period February to December, 2009. Therefore, there will be waiver of pre-deposit and stay of recovery in respect of the adjudged dues - Stay granted.
Issues: Validity of debiting CENVAT credit for Service tax liability; Interpretation of Circular No. 962/05/2012-CX; Applicability of Section 11A of Central Excise Act and Section 73 of Finance Act, 1994.
Analysis: 1. Validity of debiting CENVAT credit for Service tax liability: The Tribunal considered whether the debit of CENVAT credit available as on 29-6-2010 in the CENVAT credit register of the appellant towards payment of Service tax for the period from November to December, 2009 was legally in order. The appellant debited a significant amount towards Service tax liability, which was not accepted for appropriation in the impugned order. The learned counsel referenced Circular No. 962/05/2012-CX, dated 28-3-2012, which clarified the utilization of CENVAT credit accruing on a given date for payment of arrears of duty for a period prior to that date. Drawing a parallel between relevant sections of the Central Excise Act and the Finance Act, the appellant claimed a prima facie case for utilizing the CENVAT credit for the Service tax liability. 2. Interpretation of Circular No. 962/05/2012-CX: The Tribunal analyzed the applicability of Circular No. 962/05/2012-CX, which allowed for the utilization of CENVAT credit accruing on a specific date for the payment of arrears of duty for a period preceding that date. The appellant relied on this circular to support their position that the CENVAT credit accrued on 29-6-2010 could be used for the payment of arrears of Service tax for the period from February to December, 2009. The Tribunal found legitimate support for the appellant's argument based on this circular. 3. Applicability of Section 11A of Central Excise Act and Section 73 of Finance Act, 1994: The Tribunal considered the applicability of Section 11A of the Central Excise Act and Section 73 of the Finance Act, 1994 in the context of the case. The learned counsel drew a parallel between these sections and claimed a prima facie case for utilizing the CENVAT credit for the payment of arrears of Service tax. The Tribunal acknowledged the appellant's argument and granted waiver of pre-deposit and stay of recovery concerning the adjudged dues, based on the interpretation of the relevant legal provisions and circular. In conclusion, the Tribunal found in favor of the appellant, supporting their position that the CENVAT credit accrued on a specific date could be utilized for the payment of arrears of Service tax for a preceding period, based on the interpretation of Circular No. 962/05/2012-CX and relevant provisions of the Central Excise Act and the Finance Act, 1994.
|
