2013 (2) TMI 491 - AT - Service Tax

Duty paying document - Stay of recovery - Denial of CENVAT credit in absence of documentary evidence - Of business support service received from Input Service Distributor - Disallowance has been made in the absence of documentary evidence - Rule 9(g) of CCE 2004 - read with Rule 4A(2) of STR, 1994 - Rule 14 of Cenvat Credit Rules, 2004 - read with proviso to Section 11A of the Central Excise Act, 1944 - Held that - Assessee have produced copies of these documents with a miscellaneous application. These documents include the ST-3 returns of the ISD, relevant challans and other documents related to distribution of services to the assessee by the ISD. Taking into all the said documents on record and, for the ends of justice, direct the adjudicating authority to reconsider the appellant s claim for CENVAT credit. Remand back to Commissioner

Summary

Issues: Appeal for waiver of pre-deposit and stay of recovery; Adjudication of CENVAT credit claims.

Analysis:
1. Waiver of Pre-deposit and Stay of Recovery: The appellant filed an application seeking waiver of pre-deposit and stay of recovery in relation to the adjudged dues. Upon reviewing the records and hearing both parties, the tribunal decided that the appeal itself needed final disposal at that stage. Therefore, after dispensing with the pre-deposit requirement, the tribunal proceeded to take up the appeal for consideration.

2. Adjudication of CENVAT Credit Claims: The impugned order by the Commissioner allowed a CENVAT credit of Rs. 69,01,252/- to the appellant for 'online information and database access and retrieval service' received from their head office (ISD) in July 2009, based on ST-3 returns and relevant challans. However, the claim for CENVAT credit of Rs. 30,76,279/- for 'business support service' from the ISD was disallowed due to lack of documentary evidence. The appellant submitted relevant documents supporting this claim through a miscellaneous application. After examining the documents and hearing both sides, the tribunal decided to allow the application, accept the documents, and directed the adjudicating authority to reconsider the claim for CENVAT credit of Rs. 30,76,279/- based on the provided evidence. The Commissioner was instructed to give the appellant an opportunity to present further documentary evidence, be personally heard, adjudicate the claim in accordance with the law, and issue a speaking order. It was clarified that the credit already allowed to the appellant would remain unaffected.

3. Outcome: As a result, the appeal was allowed by remanding the case to the adjudicating authority for further consideration of the CENVAT credit claim. The stay application was also disposed of in light of the tribunal's decision to remand the matter for reevaluation.