9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2023 (10) TMI 172 - AT - Service TaxDisallowance of CENVAT Credit - availment of credit twice - non-production of any proof or evidence of reversal of cenvat credit taken inadvertently - HELD THAT - It is a fact on record that the appellant has taken cenvat credit on advance payment made by them and the cenvat credit was also taken on full amount raised by the service provider, but later on the appellant has availed less cenvat credit on the amount equivalent to the amount of cenvat credit pertaining to the advance paid by them. As this fact has not been disputed by either of the sides, therefore, it is concluded that the appellant has reversed the excess cenvat credit and are not liable to reverse the cenvat credit again. There is ample cenvat credit lying in the cenvat credit account, therefore, no payment of interest is required to be made by the appellant in the light of the decision of the Hon ble Karnataka High Court in the case of COMMISSIONER OF CENTRAL EXCISE SERVICE TAX LARGE TAXPAYER UNIT, BANGALORE VERSUS M/S BILL FORGE PVT LTD, BANGALORE 2011 (4) TMI 969 - KARNATAKA HIGH COURT , wherein the Hon ble High Court has held that once the entry was reversed, it is as if that the Cenvat credit was not available. No penalty is imposable on the appellant - Impugned order set aside - appeal allowed.
Issues involved: Appeal against disallowance of cenvat credit inadvertently taken.
Summary: The appellant appealed against an order disallowing cenvat credit inadvertently taken by them. The appellant had received services and taken cenvat credit on advance payment, later realizing the excess credit taken, adjusted it with another cenvat credit available. The revenue alleged double credit without proof of reversal, leading to the impugned order. Upon hearing both parties and examining records, it was found that the appellant had indeed reversed the excess credit taken, thus not liable to reverse it again. Additionally, as there was sufficient cenvat credit available, no interest payment was required based on a decision of the Hon'ble Karnataka High Court. The court held that interest is compensatory and payable only on delayed payment of duty, not from the date of wrong availment of cenvat credit. No penalty was imposed on the appellant, and the impugned order was set aside, allowing the appeal with any consequential relief.
|
