2018 (8) TMI 491 - AT - Service Tax

CENVAT Credit - duty paying documents - demand on the ground that the appellant has not been able to produce the original duty paying documents, for which they have taken the CENVAT Credit - Held that - The original invoices could not be produced by the appellants before the ld. djudicating Authority, which are now available with the appellant as per the ld.Advocate for the appellant - these duty paying documents in original are required to be produced by the appellants to the adjudicating authority. Thereafter, the Adjudicating Authority will verify the same and allow the credit, if found correct. The Adjudicating Authority is required to recompute the demand while adjudicating the case afresh, so as to avoid the overlapping period in the various demands - appeal allowed by way of remand.

Summary

Issues Involved:
Demand confirmation based on failure to produce original duty paying documents for Cenvat Credit, overlapping demands in the appeal.

Analysis:
The appeal was filed against an Order-in-Original passed by the Commissioner of Central Excise & S.Tax, Patna, confirming the demand due to the appellant's inability to produce original duty paying documents for which Cenvat Credit was availed. The issue revolved around the demand raised concerning Cenvat Credit taken based on photocopies of invoices, which were not presented to the original adjudicating authority during the hearing. The Revenue contended that the demand was justified due to the appellant's failure to produce the original documents. Additionally, overlapping demands were identified in the appeal, which needed to be addressed.

M/s BSNL, Area Offices, had availed credit using photocopies of invoices distributed to them, as they procured duty paid goods on single invoices that needed to be allotted to different registered areas/branches. The Tribunal noted that the original invoices, now available with the appellant, were not presented before the adjudicating authority. The Tribunal directed the appellants to produce these original duty paying documents for verification by the Adjudicating Authority. It was emphasized that the Authority must recompute the demand to avoid overlapping periods in various show-cause notices. The Adjudicating Authority was instructed to complete the adjudication process within three months and the appellant was advised against seeking unnecessary adjournments.

In conclusion, the impugned orders were set aside, and the matter was remanded back to the adjudicating authority for further proceedings in accordance with the directions provided by the Tribunal.