2014 (1) TMI 1452 - AT - Service Tax

Annexures of cenvat credit enclosed but not examined as per Rule 4 of Service Tax Rules - Waiver of Pre-deposit Held that - The particulars required to be mentioned in the invoices were not mentioned and the Commissioner did not accept those enclosures as the documents on which CENVAT Credit would be available - Prima facie, the invoices should contain all the particulars relating to the availability of credit and passing of the credit as prescribed in the relevant Rule - assessee offered to deposit Rupees Forty Lakhs as pre-deposits and the same was ordered upon such submission rest of the deposits to be waived till the disposal partial stay granted.

Summary

Issues involved:
Application for waiver of pre-deposit of total CENVAT Credit and penalty under Rule 15(3) of CENVAT Credit Rules, 2004.

Analysis:
The appellant sought waiver of pre-deposit of total CENVAT Credit and penalty imposed under Rule 15(3) of CENVAT Credit Rules, 2004. The appellant claimed to have availed CENVAT Credit based on invoices issued by their head office registered as an input service distributor. The appellant argued that although the particulars were not mentioned in the invoices, details of CENVAT Credit particulars were enclosed as annexures to the invoices. The Commissioner accepted the annexures in the impugned order but did not consider them as invoices in accordance with Rule 4 of Service Tax Rules. The appellant offered to deposit Rs.40,00,000 as a compromise. On the other hand, the Revenue contended that the appellant wrongly availed CENVAT Credit based on particulars in the annexures not mentioned in the invoices. The Revenue argued that unless documents adhere to the procedure under CENVAT Credit Rules, no CENVAT Credit is admissible.

The Tribunal observed that the invoices did not contain all the particulars required for the availability and passing of credit as per the relevant Rules. The Commissioner did not recognize the enclosures as documents for availing CENVAT Credit. Consequently, the Tribunal accepted the offer made by the appellant to deposit Rs.40,00,000 within eight weeks. Upon deposit of this amount, the balance dues would be waived, and recovery stayed during the pendency of the appeal. Both parties were permitted to apply for an early hearing of the appeals after complying with the order. The compliance was to be reported by a specified date.

In conclusion, the Tribunal directed the appellant to deposit a specified amount within a stipulated period to avail the benefit of waiver of the remaining dues. The decision was based on the inadequacy of particulars in the invoices for claiming CENVAT Credit and the failure to adhere to the prescribed rules. The Tribunal's order aimed to balance the interests of both parties while ensuring compliance with the legal requirements for availing CENVAT Credit.