2009 (11) TMI 151 - AT - Service Tax

Cenvat Credit- Documents and accounts- the Adjudicating authority disallowed Cenvat credit to the assessee on ground that documents on which credit had been taken did not contain necessary particulars. Commissioner (Appeals) upheld the order of Adjudicating Authority. The assessee furnish detailed worksheet/chart for the said purpose but not consider by Commissioner (Appeals) Held that-set aside the Impugned order and remand back the matter.

Summary

Issues: Disallowance of Cenvat credit due to missing particulars in documents.

Analysis:
The judgment revolves around the disallowance of Cenvat credit due to missing particulars in documents. The Appellate Tribunal, after hearing both sides, decided to proceed with the appeal and granted the prayer for waiver. The disallowance of Cenvat credit was based on the absence of necessary particulars in the documents, such as Registration Certificate No. of service providers, description of services, consignee's address, and invoices for input services availed before a specific date. The assessee accepted their ineligibility for credit on invoices with input services prior to the specified date and those lacking the assessee's name, leading to the reversal of a certain amount. However, the denial of credit for the remaining amount was challenged on the grounds of detailed submissions and documents provided by the assessee. The adjudicating authority did not verify the furnished details before denying credit, and the impugned order upheld the denial without discussing the specifics provided by the assessee. Consequently, the Appellate Tribunal set aside the impugned order and remitted the case for a fresh decision to the Commissioner (Appeals). The Commissioner (Appeals) was directed to consider the submissions made by the assessee, provide a reasonable opportunity for defense, and pass a fresh order after thorough evaluation.

Conclusion:
The appeal was allowed by way of remand, emphasizing the importance of proper verification and consideration of details furnished by the assessee before disallowing Cenvat credit. The judgment highlights the necessity for adjudicating authorities to conduct thorough assessments and discussions on the submissions and documents provided by the parties involved in matters concerning credit disallowance, ensuring a fair and just decision-making process.