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2024 (2) TMI 370 - AT - Service TaxCENVAT Credit - input services - Outdoor Catering Services - denial on the account of raising of invoice after 14 days - HELD THAT - As a matter of fact, neither in the Show Cause Notice, nor in the Order-in-Original there is any dispute that this amount was not paid by the service provider so as to deny the Cenvat Credit. So far as the denial of the same on account of raising of the invoice after 14(fourteen) days from the date of provision is concerned, it is noted that this is not a normal invoice for which this provision would be applicable. This invoice is specifically raised for the Service Tax paid by the service provider for the past period. Therefore, there are no infirmity for the Appellant taking Cenvat Credit. Further, the entire demand of 1,52,82,260/- is for the period August 2008 to September 2009, wherein there was no exclusion clause for taking Cenvat Credit on Outdoor Catering Services . Therefore, the confirmed demand of Rs.1,52,82,260/- is set aside. Second confirmed amount of Rs.98,12,269/- - HELD THAT - It is found that almost the entire Cenvat Credit pertains to the invoices raised before 31.03.2011. From the tables annexed to the Show Cause Notice, it is found that in the case of one service provider, they have raised the Bills on 01.04.2011, which clearly show that the service has been provided during the month of March 2011 only. In case of another service provider they have raised the Bill on 31.03.2011, but the credit has been taken in the month of July 2011. Therefore, the clarification given in the cited Circular fully applies to these Bills - the confirmed demand of Rs.98,12,269/- is set aside. Appeal allowed.
Issues involved:
The case involves a dispute over the eligibility of Cenvat credit for 'Outdoor Catering Services' received by the Appellant during specific periods. The key issues are the validity of the demands made by the Revenue for the Cenvat credit taken by the Appellant, the interpretation of relevant rules regarding Cenvat credit, and the timing of invoice issuance by the service providers. Summary: Issue 1: Eligibility of Cenvat credit for the period August 2008 to September 2009: The Appellant engaged outdoor caterers for their employees' food needs during the mentioned period. The Show Cause Notice was issued for the Cenvat credit taken during this time. The Adjudicating authority denied the credit based on the timing of invoice issuance by the contractor, M/s. H.N. Pareek & Co. The Appellant argued that the supplementary invoice satisfied the conditions of Rule 9 of Cenvat Credit Rules, 2004. The Tribunal noted that the invoice was for Service Tax paid for past periods and found no dispute regarding the payment. As there was no exclusion clause for taking Cenvat Credit on 'Outdoor Catering Services' during this period, the Tribunal set aside the confirmed demand of Rs.1,52,82,260/-. Issue 2: Eligibility of Cenvat credit for the period July 2010 to March 2011: For the demand of Rs.98,12,269/- related to this period, the adjudicating authority contended that bills were raised after 01.04.2011, making them ineligible for Cenvat credit. The Appellant referred to a circular clarifying that credit is available if the service was provided before 31.03.2011, even if the invoice was raised later. The Tribunal found that most of the credit pertained to invoices raised before 31.03.2011, and the cited circular applied to the situation. Consequently, the Tribunal set aside the confirmed demand of Rs.98,12,269/-. In conclusion, the Tribunal allowed the Appeals with consequential relief, if any, as per law. *(Dictated and pronounced in the open Court.)*
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