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2019 (8) TMI 486 - AT - Central ExciseCENVAT Credit - input services - GTA Services - Invoices addressed to Corporate Office - Hotel stay - Auction Services - revenue neutrality. GTA Services - HELD THAT - This Bench has been consistently remanding the matter back to the file of the Adjudicating Authority in the light of the subsequent Board Circular No. 1065/4/2018-CX (supra) and also the binding decisions of the Hon ble Supreme Court in the cases of COMMISSIONER OF CENTRAL EXCISE SERVICE TAX VERSUS ULTRA TECH CEMENT LTD. 2018 (2) TMI 117 - SUPREME COURT and COMMISSIONER, CUSTOMS AND CENTRAL EXCISE, AURANGABAD VERSUS M/S ROOFIT INDUSTRIES LTD. 2015 (4) TMI 857 - SUPREME COURT to consider the plea of the appellant that the sale was on FOR destination basis - Matter on remand. Invoices addressed to Corporate Office - HELD THAT - The registration as ISD is not mandatory, which is evident from the C.B.E.C. Circular No. 1063/2/2018-CX dated 16.02.2018 wherein the Board has accepted the decision of the Hon ble High Court of Gujarat in the case of COMMISSIONER OF CENTRAL EXCISE VERSUS DASHION LTD 2016 (2) TMI 183 - GUJARAT HIGH COURT wherein it has been held that non-registration of ISD is only a procedural irregularity, for which reason the benefit of CENVAT Credit cannot be denied to the assessee - Credit cannot be denied on this ground and is allowed. Hotel Stay - HELD THAT - This, according to me, deserves credit. The First Appellate Authority has not referred to or relied on any piece of evidence as to his observation that when the services are used primarily for personal consumption of any employee, then such input credit on such services is not an eligible credit and nor is it the case of Adjudicating Authority that the same were used for the personal consumption of any employee. - the denial is not proper and is only on assumptions - credit allowed. Auction services - denial on the ground of post manufacturing activity - HELD THAT - The definition of Rule 2(l) of the CENVAT Credit Rules, 2004 (amended) covers commission paid on sales promotion as well, which is in relation to the manufacturing activity. Hence, the CENVAT Credit availed on Auctioneer Services in the case on hand also deserves credit, more so because the sale by auction has suffered Central Excise Duty as well as VAT. It is also an admitted position that even the registered auctioneer has remitted Service Tax on the commission it received from the appellant - credit allowed. Revenue neutrality - HELD THAT - Ld. AR contended that the assessee has to establish the same in the first place, which is to be tested and not merely accepted. Appeal allowed in part and part matter on remand.
Issues:
- Denial of CENVAT Credit on GTA Services - Invoices addressed to Corporate Office - Denial of CENVAT Credit on Hotel stay - Denial of CENVAT Credit on Auction Services Denial of CENVAT Credit on GTA Services: The appellant challenged the denial of credit on GTA Services, citing C.B.I.C. Circular No. 1065/4/2018-CX and arguing that the delivery was at the customer's place. The Adjudicating Authority was directed to consider the plea that the sale was on 'FOR' destination basis in light of relevant Supreme Court decisions and the Circular. The matter was remanded for further examination. Invoices addressed to Corporate Office: The appellant contended that no service was received at the Corporate Office due to a procedural lapse in obtaining ISD registration. The Tribunal found ISD registration not mandatory based on relevant circulars and judicial decisions, setting aside the denial of CENVAT Credit on this ground. Denial of CENVAT Credit on Hotel stay: The appellant clarified that hotel accommodation was for technicians related to machinery repairs, not personal in nature. The Tribunal held that the denial was based on assumptions, lacking evidence of personal consumption by employees. The impugned order was set aside on this issue. Denial of CENVAT Credit on Auction Services: Authorities denied credit on Auction Services as a post-manufacturing activity. However, the Tribunal noted that commission paid towards sales promotion was eligible, supported by various judicial decisions and CBEC clarifications. The definition of CENVAT Credit Rules covered such commissions, making the denial unsustainable. The appellant's position was upheld in this regard. The Tribunal partly allowed the appeal and remanded the matter for further consideration on certain issues. The judgment emphasized the importance of considering relevant circulars, judicial decisions, and factual evidence in determining the eligibility of CENVAT Credit.
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