2018 (5) TMI 312 - AT - Service Tax

CENVAT credit - input service used in providing output service, manufacture of excisable goods and also in trading activity - non-speaking order - Held that - Ld. Commissioner (Appeals) even though narrated the facts from the stage of issuance of SCN, however, has not dealt with any of the arguments advanced by the appellant and correspondingly recorded findings on each aspect of the case relating to denial of credit alleged to have availed wrongly - the order is cryptic and non-speaking order and hence it is prudent to remand the matter to the Ld. Commissioner (Appeals) to deal with each and every aspect of the case - appeal allowed by way of remand.

Summary

Issues involved:
Appeal against order-in-appeal denying cenvat credit on input services used in output service, excisable goods manufacture, and trading activity.

Analysis:
The appellant appealed against the order-in-appeal denying cenvat credit on input services used in providing output service, manufacturing excisable goods, and trading activity. The demand notice alleged inadmissibility of the credit availed, proposing recovery of ?49,07,865 with interest and penalty. The Ld. Commissioner (Appeals) rejected the appeal without addressing the appellant's arguments. The appellant's advocate contended that the credit on input services could be used to discharge service tax liability and excise duty on manufactured goods. Additionally, it was argued that input services used in trading CNG should not disqualify them from availing proportionate credit of service tax paid. The Ld. AR for the Revenue supported the Ld. Commissioner (Appeals)'s findings. The Tribunal observed that the Ld. Commissioner (Appeals) did not address the appellant's arguments and failed to provide specific findings on the denial of credit. Consequently, the Tribunal set aside the impugned order and remanded the matter to the Ld. Commissioner (Appeals) for a detailed examination of each aspect of the case and to record specific findings on the issues raised by the appellant. The appellant was granted a reasonable opportunity of hearing, and all issues were kept open. The appeal was allowed by way of remand.

This judgment highlights the importance of addressing all arguments raised by the appellant and providing specific findings in tax-related cases. The Tribunal emphasized the need for a detailed and speaking order, ensuring that all aspects of the case are thoroughly examined and addressed. The decision to remand the matter to the Ld. Commissioner (Appeals) underscores the significance of a comprehensive and reasoned decision-making process in tax disputes, ultimately ensuring a fair and just resolution for all parties involved.