2018 (5) TMI 292 - AT - Central Excise

CENVAT credit - input services - Out Door Catering Service (Canteen Service) during the period from April 2014 to August 2014 - Held that - The Ld. Chartered Accountant submits that after computing the actual liability taking into consideration the contribution collected from the employees for providing the canteen service they have reversed a total credit of ₹ 83,056/- being inadmissible, but they are eligible to the credit of ₹ 85,734/-. This aspect needs to be verified - appeal allowed by way of remand.

Summary

Issues Involved:
Entitlement to CENVAT credit of service tax paid on Out Door Catering Service (Canteen Service) during April 2014 to August 2014.

Analysis:

The appeal was filed against an order passed by the Commissioner of Central Excise (Appeals) Ahmedabad. The primary issue in question was whether the appellant was entitled to CENVAT credit of service tax paid on Out Door Catering Service (Canteen Service) during the period from April 2014 to August 2014. The appellant's Chartered Accountant argued that while the Ld. Commissioner (Appeals) allowed the credit on merit, there was a disallowance of a certain credit amount due to improper scrutiny of invoices. The appellant reversed a portion of the credit as it was deemed inadmissible since the value of the service had been collected from the employees. However, a credit amount was claimed to be admissible. The matter was requested to be remanded for further verification by the adjudicating authority. The Ld. AR for the Revenue supported the findings of the Ld. Commissioner (Appeals).

Upon examination, it was found that the department had allowed the admissibility of credit on Outdoor Catering (Canteen Service to Employees) for the period April 2011 to March 2014 but denied the credit from April 2014 to August 2014 without proper scrutiny of relevant documents and evidence. The Chartered Accountant highlighted that after recalculating the liability, a certain credit amount was reversed as inadmissible, while another amount was claimed to be eligible for credit. The issue of whether the credit amount of &8377; 85,734/- availed for the period April 2014 to August 2014 was admissible needed to be verified. Consequently, the appeal was remanded for the specific purpose of verifying the admissibility of the said credit amount. The appeal was allowed by way of remand, emphasizing the need for verification of the claimed credit amount.

In conclusion, the judgment focused on the entitlement to CENVAT credit of service tax paid on Out Door Catering Service (Canteen Service) during a specific period. The decision highlighted the importance of proper scrutiny of documents and evidence in determining the admissibility of credit amounts, leading to the remand of the case for further verification.