9911796707
TMI Blog2012 (7) TMI 740X X X X Extracts X X X X X X X X Extracts X X X X ..... ing credit of service tax paid on input services. During audit, it was pointed out to the assessee that credit is not available in respect of service tax paid on activities like "vehicle insurance, AMC on Xerox machines, housekeeping by management". The assessee paid the entire amount of Rs.1,64,101/- on 16/04/2008. However, a show-cause notice dt. 23/12/2008 was issued directing the assessee to show cause as to why i. an amount of Rs.1,64,101/- being the irregular service tax credit availed by them, should not be recovered from them for extended period in terms of Rule 14 of the CENVAT Credit Rules, 2004 read with proviso to Section 73 of the Finance Act, 1994; ii. Interest at the applicable rate on the amount mentioned at (i) above, sho ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n of penalties, they have contested the same. Against the order passed by the original authority, they filed appeal before the Commissioner (Appeals) and the Commissioner (Appeals) has rightly set aside the order of the original authority. He further submitted that there has been nexus between the services and the manufacturing activities. 6. I have carefully considered the submission from both sides and perused the records. Audit pointed out to the assessee that credit taken on certain services was not admissible and the respondent-assessee paid the amount on 16/04/2008. Even if the assessee-respondent felt that the matter was closed, the Department has not treated the matter as closed and issued show-cause notice on 23/01/2008 not merely ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the light of Rule 5 of Central Excise (Appeals) Rules, 2001 which reads as under:- RULE 5. Production of additional evidence before Commissioner (Appeals). - (1) The appellant shall not be entitled to produce before the Commissioner (Appeals) any evidence, whether oral or documentary, other than the evidence produced by him during the course of the proceedings before the adjudicating authority except in the following Circumstances, namely:- (a) where the adjudicating authority has refused to admit evidence which ought to have been admitted; or (b) where the appellant was prevented by sufficient cause from producing the evidence which he was called upon to produce by adjudicating authority; or (c) where the appellant was prevented by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , to say that the respondent-assessee has not contested the same cannot been accepted in the absence of any specific findings to that effect by the original authority. At the same time, the reply of the respondent-assessee does not show that they have really contested the demand as the focus was only relating to dropping of penal action. However, they have chosen to contest the demand itself before the Commissioner (Appeals). 9. In view of the peculiar facts and circumstances of the case, I deem it appropriate to set aside the order of the Commissioner (Appeals) and that of the original authority and remand the matter to the original authority to give specific findings on the issues raised in the show-cause notice. The assessee is permitte ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
