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2017 (8) TMI 1052 - AT - Service TaxWorks Contract Service - benefit of N/N. 32/2007-ST dated 22.05.2007 - the Ld. Commissioner instead of scrutinizing all the invoices extended the benefit only on the basis of examination of sample invoices - Held that - Even though the Revenue has submitted that the said finding of the ld. Commissioner(Appeals) is erroneous since all the invoices had not been examined, before arriving at the conclusion, but, not a single invoice had been placed on record contrary to the sample invoices - appeal dismissed - decided against Revenue.
Issues:
Appeal against OIO No.60/Commr/2013 - Benefit of Notification No.32/2007-ST - Scrutiny of all vs. sample invoices - Availment of Cenvat credit on input services - Eligibility for Works Contract (Composition Scheme for payment of Service Tax) Rules, 2007. Analysis: The appeal was filed by Revenue against OIO No.60/Commr/2013, contending that the Ld. Commissioner extended the benefit of Notification No.32/2007-ST based only on the examination of sample invoices, rather than scrutinizing all invoices. The Ld. AR for the Revenue reiterated the grounds of the appeal. However, the Ld. Commissioner, after analyzing the sample invoices, observed that the Works Contract (Composition Scheme for payment of Service Tax) Rules, 2007 allowed payment of service tax at a specified rate on the gross amount charged, with a condition of non-availment of Cenvat credit on inputs. The Commissioner found that the noticee had availed Cenvat credit on input services only, not on inputs, based on the invoices submitted. The Final Audit Report also supported this finding. Consequently, the demand for recovery was dropped. The Revenue argued that the Commissioner's finding was erroneous as not all invoices were examined. However, the Tribunal noted that no contrary invoices were presented to challenge the sample invoices. Therefore, the Tribunal upheld the impugned order and dismissed the Revenue's appeal. The decision was based on the clear indication from the invoices that Cenvat credit was availed on input services, aligning with the conditions of the Works Contract (Composition Scheme for payment of Service Tax) Rules, 2007.
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