2024 (2) TMI 502 - AT - Service Tax

CENVAT Credit - M.S. angles, channels, beams etc. used for the purpose of erection and installation of hoarding through which the appellant is providing advertising service - HELD THAT - In the issue in the present case i.e. eligibility of the Cenvat credit on the steel materials such as M.S. angle, channels, G.P. Coils, beams etc. used in fabrication of hoardings which is further used for advertising service this Tribunal in CHITRA PUBLICITY COMPANY PVT. LIMITED VERSUS COMMISSIONER OF SERVICE TAX, AHMEDABAD 2019 (11) TMI 19 - CESTAT AHMEDABAD remanded the matter by giving detailed observation. The present case is sequel of the earlier case involving the same issue for the subsequent period. Therefore, in the interest of justice this matter along with earlier remanded matter needs to be decided together on merit. Thus, this matter also should go back to be decided a fresh. Accordingly, the impugned order is set aside and the matter remanded to the adjudicating authority for deciding a fresh considering the observation made - Appeal is allowed by way of remand to the Adjudicating Authority.

Summary

Issues involved:
The issue involved in the present case is whether the appellant is entitled to Cenvat Credit on steel materials used for the erection and installation of hoarding for providing advertising service.

Details of Judgment:

Eligibility of Cenvat Credit:
The Tribunal remanded the matter for reconsideration by the Adjudicating Authority based on the previous order dated 31.10.2019, which discussed the admissibility of Cenvat credit on steel items. Various judgments from different High Courts were considered, highlighting the mixed question of law and facts regarding the use of goods. The Tribunal emphasized the need for the Adjudicating Authority to review the case in light of the evolving legal landscape and contradictory judgments. The matter was remanded for a fresh decision considering the observations made in the previous order.

Setting Aside of Demand:
Regarding the Revenue's appeal seeking to set aside the dropping of demand, the Adjudicating Authority's decision was upheld due to the absence of suppression of facts based on the CERA audit report. The audit confirmed no objection to the Cenvat credit availed by the appellant, leading to the conclusion that there was no suppression of facts until March 2007. The Tribunal agreed with the Adjudicating Authority's findings and dismissed the Revenue's appeal. Consequently, the appellant's appeal was disposed of by remanding the matter to the Adjudicating Authority for a fresh decision.

This judgment emphasizes the importance of considering evolving legal interpretations and factual circumstances in determining the eligibility of Cenvat credit and the presence of suppression of facts in tax matters. The decision highlights the need for a thorough review of cases in light of changing legal precedents to ensure a just and fair outcome.