2008 (5) TMI 157 - AT - Service Tax

Documents for availing input credit - non-production of documents for the relevant period - reasons given for non-production that there was shift of the appellant s office to new premises and during this transit some of the invoices were mis-placed, is accepted delay in production of copies of relevant documents is condoned - matter is remanded back to the Original Authority to permit the appellants to produce all the documents once more

Summary

Issues: Service Tax demand confirmation, Input credit rejection, Non-production of documentary evidence, Remand for re-adjudication.

Service Tax Demand Confirmation: The appeal arose from an Order-in-Appeal confirming a Service Tax demand of Rs. 2,73,554/- along with interest and penalty under Section 78 of the Finance Act. The assessee had claimed input credit for certain items from June 2003 to September 2003, which was rejected due to non-compliance with procedure and lack of documentary evidence.

Input Credit Rejection: The Chartered Accountant for the appellants submitted that they now have produced all the necessary documentary evidence for input credit and explained the reasons for the initial non-production. He cited a shift in office premises leading to misplacement of invoices as a reason for the delay. The appellants sought a remand to satisfy the Original Authority about their eligibility for input credit and to challenge the non-confirmation of demands.

Non-Production of Documentary Evidence: The authorities rejected the input credit claim as the invoices and Challans were not produced initially. However, the appellants later submitted all the documents for the relevant period to support their claim. The Tribunal accepted the reasons for the delay in production, condoned the delay, and remanded the matter back to the Original Authority for re-adjudication within four months.

Remand for Re-Adjudication: The Tribunal allowed the appeal by remanding the matter to the Original Authority to permit the appellants to re-submit all documents and justify their claim for input credit and the absence of liability to pay Service Tax for the relevant period, including penalty and interest. The re-adjudication was directed to be completed within four months from the receipt of the order.