2018 (4) TMI 110 - AT - Service Tax

Refund of unutilized Cenvat credit - invoices do not contain PAN based registration number - invoices having wrong address - Held that - the invoices were issued after performance of service and service receiver cannot be held responsible for non mentioning of PAN based service tax number on the invoices - the mistakes committed on the said invoices were of minor nature, such as mistake of writing sector number or addresses etc. and they were rectifiable and therefore, the said CENVAT credit was admissible to the respondent. Services provided by Chartered Accountant - Held that - the said credit was on service tax on the services provided by Chartered Accountant and such services were essential for running of the business on day to day basis. Appeal dismissed - decided against Revenue.

Summary

Issues:
1. Admissibility of Cenvat credit and refund in relation to invoices without PAN based registration number.
2. Admissibility of Cenvat credit and refund for invoices with wrong addresses.
3. Admissibility of Cenvat credit for maintenance and repair services with incorrect addresses on invoices.
4. Admissibility of Cenvat credit for rent of premises and services provided by a Chartered Accountant.

Analysis:
1. The appeal was filed by the Revenue against an Order-in-Appeal regarding the refund of unutilized Cenvat credit by the respondent. The Revenue contended that certain amounts were not admissible due to issues with invoices lacking PAN based registration numbers. The Commissioner (Appeals) allowed some credit and refund, leading to the appeal. The Tribunal found that the invoices without PAN numbers were issued after service performance, making the service receiver not liable for the omission. Hence, the credit was deemed admissible.

2. Regarding invoices with incorrect addresses, the Tribunal noted that minor mistakes like sector numbers or addresses were rectifiable and did not affect the admissibility of Cenvat credit. The Commissioner (Appeals) had correctly allowed the credit in this regard.

3. The Tribunal also addressed the admissibility of Cenvat credit for maintenance and repair services with incorrect addresses on the invoices. After reviewing evidence like bank statements and ledgers, it was established that the services were indeed received by the respondent, justifying the allowance of the credit by the Commissioner (Appeals).

4. Lastly, the Tribunal discussed the admissibility of Cenvat credit for rent paid for premises and services provided by a Chartered Accountant. The Commissioner (Appeals) had correctly allowed these credits, considering the essential nature of the services for the business operations. The Tribunal concurred with the findings and concluded that there was no reason to interfere with the Order-in-Appeal, ultimately rejecting the appeal filed by the Revenue.