2024 (7) TMI 926 - HC - Central Excise

Wrongful availment of Cenvat credit on different input services - recovery of credit with interest and penalty - HELD THAT - The respondent-assessee availed Cenvat Credit on various services and Revenue denied on few which included CHA services for export, renting of immovable property service, CHA (import), legal consultancy service, company secretary service, convention services, real estate service, cargo handling service etc. These all services have been used in or relation to manufacture of finished goods and fall within the definition of input service . There are no factual or legal infirmity in the impugned order warranting interference of this Court, thus, the instant appeals deserve to be dismissed and accordingly dismissed.

Summary

Issues Involved:
Appeal under Section 35G of the Central Excise Act, 1944 seeking to set aside the order passed by the Customs Excise And Service Tax Appellate Tribunal, Chandigarh allowing the appeal of the respondent-assessee regarding the availing of Cenvat credit on various input services.

Detailed Analysis:

1. Background and Facts:
The respondent-assessee, engaged in the manufacture of motorcycles, availed Cenvat credit on input services during a specific period. The department issued a show cause notice alleging wrongful availment of Cenvat credit on different input services, leading to a demand for recovery under relevant provisions of the Central Excise Act, 1944.

2. Order of the Commissioner:
The Commissioner of Central Excise, Delhi-III, after considering the show cause notice, partially dropped the demand while partially confirming it along with interest and penalty.

3. Appeal before the Tribunal:
Both the respondent-assessee and the appellant-department preferred appeals, which were heard by the Tribunal. The Tribunal, on 19.02.2019, allowed the appeal of the respondent-assessee and dismissed the appeal of the Revenue.

4. Contentions and Arguments:
The appellant-department contested the Tribunal's order, challenging the entitlement of the respondent-assessee to avail Cenvat credit on various services. However, the Standing Counsel, CBIC, upon review of relevant rules and the Tribunal's findings, acknowledged the Assessee's entitlement to avail Cenvat Credit on the services used.

5. Judgment and Disposition:
The High Court, after examining the facts and legal aspects, found no infirmity in the Tribunal's order that would necessitate the Court's intervention. Consequently, the Court dismissed the instant appeals and disposed of all pending applications accordingly.

In conclusion, the High Court upheld the Tribunal's decision, affirming the respondent-assessee's right to avail Cenvat credit on the input services in question, and dismissed the appeals brought by the appellant-department seeking to set aside the Tribunal's order.