2015 (12) TMI 815 - AT - Service Tax

Denial of CENVAT Credit - there was no nexus between the input services and the output service provided by the respondent - Held that - original authority considered each input service and came to the conclusion that out of the demand for 14, 25, 029/- proposed in the show-cause notice the assessee is not eligible for CENVAT credit of 12, 78, 068/- and this was demanded with interest and he also imposed penalties under Section 77 and 78 of Finance Act 1994. However surprisingly and strangely the learned Commissioner (A) considered the whole issue as a claim for refund made under Rule 5 of CENVAT Credit Rules and considered each and every input service and came to the conclusion that appellant is eligible for the refund and remanded the matter. A case for demand of CENVAT credit got converted to a claim for refund and was allowed. I find substance in the appeal filed by the Revenue. Since the Order-in-Appeal has not considered the subject correctly the impugned order is set aside - Decided in favour of Revenue.

Summary

The Revenue appealed against the order, arguing that the Commissioner erred in considering the case as a claim for refund instead of a demand for CENVAT credit. The Tribunal found merit in the appeal and set aside the impugned order, remanding the matter for a fresh decision by the Commissioner.