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TMI Blog2010 (1) TMI 362X X X X Extracts X X X X X X X X Extracts X X X X ..... interest was not demanded by them for the delay in payment of Service tax during the period October, 2005 to March, 2006 and why the Cenvat credit to an amount of Rs. 2,27,02,809/- be not disallowed as inadmissible credit. Held that- the appellants have not violated any provisions of the Cenvat Credit Rules and have been trying to substantiate their claim of eligibility to Cenvat Credit by producing the certificate of statutory auditors as regards the correctness of the Cenvat credit availed. In view of this, we set aside the penalty imposed on the appellant. - ST/401/2007 - 461/2010 - Dated:- 13-1-2010 - S/Shri M.V. Ravindran, Member (J) and P. Karthikeyan, Member (T) Shri K.P. Kumar, Sr. Advocate, for the Appellant. Shri V. Ra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t demanded by them for the delay in payment of Service tax during the period October, 2005 to March, 2006 and why the Cenvat credit to an amount of Rs. 2,27,02,809/- be not disallowed as inadmissible credit. Appellant contested the show cause notice before the Adjudicating Authority on various grounds. The Adjudicating Authority after considering the submissions made by the appellant, during the personal hearing and also considering the records which were produced before him, came to the conclusion that appellant is liable to pay the interest on the delayed payment and is ineligible to avail Cenvat credit to the tune of Rs. 2,27,02,809/- and also imposed a penalty of Rs. 2,000/- under Rule 15(3) of the Cenvat Credit Rules, 2004. Aggrieved b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... auditors in respect of the regions, they have produced a certificate which is submitted. He fairly submits that this certificate as regards the correct amount of Service tax on which the credit has been availed, was not produced before the Adjudicating Authority during the course of adjudication proceedings. 4. Learned DR on the other hand would submit that the findings of the Adjudicating Authority are very clear. He would submit that the TR 6 Challans did not indicate the receipt date but only indicate the stamp of State Bank of India, the focal point bank which is authorized to receive the Government Revenue, and it indicates the entries made in the computer of the State Sank of India and the transfer received clearing. It is his submi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the above column. 5.3 As regards the delay in payment of Service tax for the month of March, 2006, we find from the TR 6 Challan which is produced before us, it is dated 25-4-2006 and the date of demand draft is also 25-4-2006 i.e. beyond the period of date on which Service tax liability was payable by the appellant i.e. 31-3-2006. Since the TR 6 Challan was prepared beyond the date on which the Service tax liability was to be discharged, we are of the considered view that the interest amount calculated by the Adjudicating Authority for the month of March, 2006 is payable by the appellant. We uphold the demand of interest for the month of March, 2006 and reject the appellant's appeal to this extent. 5.4 As regards the interest liabi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the appellant, for the period October, 2005 to February, 2006. 5.5 As regards the Cenvat Credit availed by the appellant on the Service tax paid or the services received, we find that the appellant today produced a certified copy of the statutory auditors, indicating that, on verification of the records it was found that said Service tax liability has been paid by the appellant to the service provider. We are of the considered view that once a statutory auditor gives a certificate, the said certificate should be considered as an evidence of substantiation to the claim for eligibility to Cenvat credit. Since, this certificate was produced before us for the first time, we are of the view that this point needs to be considered by the Adjudi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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