2017 (4) TMI 500 - AT - Service Tax

Denial of Cenvat credit of service tax - Non submission of the supporting documents - Held that - The only dispute in the present appeal relates to non-availability of invoices, which according to the appellant stand destroyed in a fire, which broke out in the premises on 7-8-2009. The fact of fire stands established by the fire report produced by the appellant as also by the FIR. The appellate authority in his order has clearly observed that he has scrutinised the invoices, etc. This fact along with the fact that the details of the credit taken were reflected in ST3 returns filed for the period in question read with undisputed fact of fire, which led to destruction of invoices, according to me should not be adopted as a reason for denial of refund as a reason - Appeal allowed.

Summary

Issues:
1. Denial of Cenvat credit of service tax due to non-availability of invoices.
2. Appeal against the order of the Commissioner (Appeals) by the Revenue.
3. Destruction of records and invoices in a fire incident.

Analysis:
1. The appellant, engaged in providing "Maintenance and Repair" services, faced a show cause notice proposing to deny Cenvat credit of service tax. The original adjudicating authority confirmed the notice, but the Commissioner (Appeals) allowed the appeal, stating that the credit was reflected in ST3 returns with necessary annexures. The appeal was allowed as the only ground for denial was lack of submitted details, without evidence of other discrepancies.

2. The Revenue appealed the Commissioner (Appeals) order before the Tribunal. The Tribunal noted the ex parte nature of the original order and that the Commissioner (Appeals) scrutinized the invoices for the first time during the appeal. The matter was remanded to the original authority based on these observations.

3. In the remand proceedings, the appellant explained that the records and invoices were destroyed in a fire incident. Despite efforts to obtain duplicate invoices, only three were procured. The adjudicating authority and the Commissioner (Appeals) upheld the demand, leading to the present appeal.

4. The central issue in the current appeal was the non-availability of invoices due to the fire incident. The appellant argued that denial of credit based on missing invoices should not stand, given the fire's documented occurrence. The Tribunal acknowledged the initial favorable order by the Commissioner (Appeals), the reflection of credit details in ST3 returns, and the fire's impact on record availability. Consequently, the Tribunal set aside the impugned order and allowed the appeal, emphasizing the fire's role in the invoice unavailability.