9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (9) TMI 774 - AT - Central Excise100% EOU - CENVAT credit - input services - credit availed before appellant got registration - Held that - decision in the case of mPortal India Wireless Solutions (P.) Ltd. Versus Commissioner of Service Tax 2011 (9) TMI 450 - KARNATAKA HIGH COURT relied upon, where it was held that Registration not compulsory - credit allowed. CENVAT credit - credit availed on the basis of photo copies of the invoices - Held that - Since appellants claim is that they are in a position to produce the original documents on which CENVAT credit was availed, in the interest of the justice, it is fit to remand this issue in respect of availment of CENVAT credit on the photo copy of the invoices, to reconsider the issue after following natural justice - matter on remand. Appeal allowed in part and part matter on remand.
Issues:
1. Eligibility of CENVAT credit for input services received by a 100% EOU. 2. Availment of CENVAT credit before registration. 3. Availment of CENVAT credit based on photo copies of invoices. Issue 1: The appeal addressed the eligibility of a 100% EOU to avail CENVAT credit for input services, particularly related to the production and export of Biodiesel. The Revenue contended that the appellant had availed CENVAT credit improperly during a specific period. The Tribunal considered various decisions and highlighted a case where denial of CENVAT credit for non-registration was deemed incorrect. The Tribunal referenced a decision by the High Court of Karnataka to support this conclusion. The Departmental Representative's argument was dismissed, emphasizing the necessity for the procedure to follow the availment of credit in the CENVAT account. The Tribunal also referred to a decision by the High Court of Madras to reinforce the settled nature of the issue, ultimately setting aside the demand. Issue 2: Regarding the availment of CENVAT credit before registration, the Tribunal found the Departmental Representative's arguments to be incorrect. It was noted that the procedure for sanctioning a refund of service tax must follow the availment of credit in the CENVAT account. The Tribunal referenced a decision by the High Court of Madras in a similar case to support this stance. Consequently, the demand related to the account was deemed unsustainable and set aside. Issue 3: The issue of availment of CENVAT credit based on photo copies of invoices was also addressed. The appellant claimed the ability to produce original documents for verification before the lower authorities. In the interest of justice, the Tribunal decided to remand this specific issue back to the lower authorities for reconsideration after ensuring natural justice. The appellant was granted the liberty to produce necessary documents in defense of their case for the availment of credit based on original documents. In conclusion, the Tribunal disposed of the appeal by addressing each issue comprehensively and providing detailed reasoning for its decisions. The judgment highlighted the importance of following legal procedures, referencing relevant case law to support the conclusions reached.
|
