2018 (2) TMI 699 - AT - Central Excise

CENVAT credit - scope of SCN - Held that - in the impugned order there is no reference to any notice issued to the service provider or any case made out against them. The said fact is required to be verified by the authorities below inasmuch as the availment of credit by the present appellant is dependent upon the same - appeal allowed by way of remand.

Summary

Issues:
1. Denial of credit on services received without service tax payment.
2. Imposition of penalty for availing credit.
3. Applicability of Rule 9(bb) and relevant case laws.

Analysis:
1. The appellant, a manufacturer of excisable goods, received services without service tax payment, later paid by the service provider through supplementary invoices. The lower authorities denied credit of &8377; 7,26,363 and imposed an equal penalty. The appellant argued that since no proceedings were initiated against the service provider and the tax was paid voluntarily, they were entitled to credit. The appellant highlighted the introduction of Rule 9(bb) post the period in question and cited relevant Tribunal decisions.

2. The judgment noted the absence of any notice or case against the service provider in the impugned order. Verification of this fact was deemed essential for the appellant's credit availment. Consequently, the order was set aside, and the matter remanded to the original authority for re-decision after confirming the status of the service provider and considering the legal precedents cited by the appellant.

3. The judgment, delivered by Ms. Archana Wadhwa, Member (Judicial) of the Appellate Tribunal CESTAT, Allahabad, on 01.12.2017, emphasized the necessity of verifying the actions against the service provider to determine the appellant's eligibility for credit. The reference to relevant case laws underscored the importance of legal precedents in tax matters, guiding the authorities in making informed decisions. The remand aimed to ensure a fair assessment based on verified facts and established legal principles, safeguarding the appellant's rights in the process.