9911796707
TMI Blog2024 (10) TMI 1343X X X X Extracts X X X X X X X X Extracts X X X X ..... refore, there was no intention as such not to pay the service tax liability on the said unreflected amount of provision of services. Apparently, they were under the impression that the Cenvat Credit accrued to them would automatically get adjusted against the total liability and they have to discharge only on the net liability by way of challan payments. Admittedly, they made such adjustment during relevant period without reflecting all these transactions in the ST-3. Since, the factual matrix is not very clear and the appellant will be required to demonstrate the actual availability of credit and its adjustment in their books of accounts, this requires to be remanded back to the Original Jurisdictional Authority, who shall go through the b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the appellants were providing certain taxable services in respect of which no details were furnished in the ST-3 returns during the month of March, 2016 and June 2016. On the basis of details of the taxable value, as was available in the ledger and ST-3 for these 2 months, it was found that there is short reporting of taxable services to the extent of Rs. 1,80,42,528/- leading to non-payment of differential tax of Rs. 26,24,489/-. The appellant tried to explain the differential duty and informed that they had paid Rs. 8,85,158/- Vide challan no. 34093 dated 05.08.2016 for the year 2015-16 (for the month of March 2016) and similarly for the year 2016-17 (for the month of June 2016) they paid Rs. 2,41,491/-. The Department, however, did ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 643/- while filing the returns for the year 2016-17 in IT returns for 2015-16 (later on adjusted to Rs. 14,89,558/-, on account of exclusion of CESS account from the said balance). Therefore, his argument is that though admittedly this credit was not reflected in the relevant ST-3 filed for the said period as is evident from the ST-3 returns for the quarter ending October to March 2016 and April to September 2016, however, they had sufficient credit balance and the same was adjusted in the month of April 2016 against their tax liability. This would be clear from Returns for the period 2016-17 which indicates this balance as zero meaning thereby a sum has been adjusted towards their liability during 2016-17. 5. Further, he has relied on cert ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d by the Department. 6. On the other hand, Learned AR has reiterated the grounds taken by the Original Adjudicating Authority as well as Commissioner (Appeals) and has also quoted proviso 3(4) of CCR 2004 in support that there is a restriction on taking the credit and it is not clear whether in view of the said adjustment is possible or otherwise. 7. Heard both the sides and perused the records. 8. A short point for decision is whether in the facts of the case, the credit claimed to have been adjusted against the service tax liability by the appellant can be allowed or otherwise. In the facts of the case, it is obvious that they are not disputing the liability as such and infact they have paid certain amount through challan way back in 2016 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arch there is a apparent adjustment in the month of April itself though it needs to be further verified. Since, the factual matrix is not very clear and the appellant will be required to demonstrate the actual availability of credit and its adjustment in their books of accounts, this requires to be remanded back to the Original Jurisdictional Authority, who shall go through the books of accounts, IT Returns and any other relevant documents which the appellants may like to produce in support of their legitimate Cenvat Credit and its adjustment. However, it is made clear that non-mentioning of the said credit in the ST-3 would not debar them from off setting or adjusting the said credit towards total liability. The Adjudicating Authority shou ..... X X X X Extracts X X X X X X X X Extracts X X X X
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