2018 (5) TMI 1198 - AT - Central Excise

CENVAT credit - input service distribution - Department has alleged that the assessee-Appellants have wrongly availed the Cenvat Credit of Service Tax paid in respect of advertisements published through the service provider, namely, M/s Crayons Advertising Limited. - Held that - there is no dispute that Cenvat Credit has been paid by M/s Crayons Advertising Limited and the same has been availed as Cenvat Credit by the ISD challans. Since there is no dispute about the availment of Cenvat Credit by the unit of the assesee-Appellants, there is no objection to the distribution of the Cenvat Credit to the assessee-Appellants Unit. It has been contended that the Department has proceeded to disallow the entire Cenvat Credit and such amount includes the credit availed under ISD invoices on various other services. This contention has not been raised before the lower authorities and has also not been discussed by the adjudicating authority in the impugned order - matter remanded to the adjudicating authority for consideration of the submissions made by the assessee-Appellants and to pass de novo orders - appeal allowed by way of remand.

Summary

Issues: Alleged wrongful availment of Cenvat Credit on service tax paid for advertisements by the assessee-Appellants.

In the present appeals, the assessee-Appellants challenged the orders passed by the Commissioner of Central Excise, Alwar, alleging wrongful availment of Cenvat Credit for service tax paid in relation to advertisements published through a service provider. The Department contended that the service provided was Business Auxiliary Service to the Print Media, and demanded reversal of the Cenvat Credit. The assessee-Appellants argued that the Cenvat Credit included various amounts of Service Tax, not just the commission amount, and highlighted that the Department did not object to similar credit availed by their other unit. The Department relied on a previous case law to support their position.

Upon hearing both sides and examining the record, the Tribunal found that the Cenvat Credit had indeed been paid and availed by the ISD challans. Noting the absence of any dispute regarding the availment of Cenvat Credit by the assessee-Appellants' unit, the Tribunal observed that the Department had disallowed the entire Cenvat Credit without considering other services covered under the ISD invoices. The Tribunal acknowledged the submissions made by the assessee-Appellants, which were not addressed by the lower authorities. Consequently, the Tribunal set aside the impugned order and remanded the matter to the adjudicating authority for a fresh consideration of the submissions, providing the assessee-Appellants with a reasonable opportunity to present their case and submit additional documents if necessary. As a result, the appeals filed by the assessee-Appellants were allowed by way of remand.