2016 (10) TMI 580 - AT - Service Tax

Denial of CENVAT credit - Chartered Accountant services - apart from the copies of invoices issued by the Chartered Accountant the appellant has not produced any evidence on record to show that consideration for the said services stand paid by them, along with service tax - Held that - there is no dispute about the Chartered Accountant Services, being cenvatable, and the only dispute relates to the verification of the documents, the impugned order set aside and matter remanded to the original adjudicating authority for examining the appellants claim. Needless to say that the appellant shall produce all the documentary evidence in support of their claim before the adjudicating authority.

Summary

Issues:
1. Service tax demand based on increased rate of duty
2. Denial of credit for Service Tax paid on Chartered Accountant and telephone services
3. Lack of evidence for payment of Chartered Accountant services

Analysis:

Issue 1: Service tax demand based on increased rate of duty
The appellant failed to pay the Service Tax at the increased rate of 10.3% as the rate of duty was raised from 5% and 8%. The Single Member Bench did not have jurisdiction over this matter, leading the appellant to withdraw the challenge against the demand for Service Tax of ?325 along with penalty.

Issue 2: Denial of credit for Service Tax paid on Chartered Accountant and telephone services
The authorities denied the credit of Service Tax paid on Chartered Accountant and telephone services, amounting to ?17,423. Regarding the telephone services credit, the appellant did not contest the denial of ?593 due to the bill being in the Director's name. However, the appellant contested the denial of credit for Chartered Accountant services.

Issue 3: Lack of evidence for payment of Chartered Accountant services
The denial of credit for Chartered Accountant services was based on the lack of evidence showing payment for these services along with service tax. The appellant argued that the Revenue did not initially request such evidence, but they have now provided it. As the Chartered Accountant services are eligible for credit, the matter was remanded to the original adjudicating authority for further examination. The appellant was instructed to submit all documentary evidence supporting their claim during the re-examination.

In conclusion, the appeal was disposed of with the decision to remand the matter for verification of the documents related to the credit availed on Chartered Accountant services, emphasizing the importance of producing all necessary evidence before the adjudicating authority for a thorough examination.