9911796707
TMI Blog2025 (2) TMI 8X X X X Extracts X X X X X X X X Extracts X X X X ..... ed and not attended the personal hearing granted by the Original Adjudicating Authority.
The Appellant has reversed the credit voluntarily in respect of Rent-a-Cab service and also on personal insurance service which is not interfered with.
Conclusion - i) The definition of 'input service' prior to 01.04.2011 included activities related to business, requiring examination of eligibility based on this definition. ii) The burden of proof regarding Cenvat credit eligibility lies with the claimant. iii) Interest and penalties are not applicable if Cenvat credit is merely taken and not utilized, subject to verification.
The impugned Order-in-Original passed by the Commissioner of Central Excise, Puducherry cannot be sustained and so ordered to be set aside by way of remand. The Appellant is directed to produce all the relevant documents on the basis of which they have taken the Cenvat credit on various input services. It need not be reiterated that while adjudicating the issue of eligibility of the Cenvat credit on various input services as above strict observance of the principles of natural justice have to be complied with - appeal allowed by way of remand. X X X X Extracts X X X X X X X X Extracts X X X X ..... Appellant before this forum. 3. The contentions of the Appellant have been summarised below: - i. The impugned order was issued in utter denial of principles of natural justice as the appellant could not make oral submissions and make effective representation before the authority. ii. The Cenvat credit could not be dis-allowed as the department had not granted the amount claimed as refund. iii. The Cenvat credit was never utilised and therefore the question of recovery of the same with interest does not arise, as held by the Apex Court in the case of CCE, Mumbai-I Vs. Bombay Dyeing and Manufacturing Co. Ltd. and by the Tribunal in M/s. TVS Sundaram Iyengar & Sons Ltd. Vs. CCE, Madurai [2015-TIOL-2081-CESTAT-Mad.] iv. The definition of input service could not be restricted to the services used in or in relation to manufacture but also extended to all services that are used in relation to the business of manufacture as the business activity is an integrated/ continuous activity. It was pointed out that up to 31.03.2011, the definition also included the term "activities relating to business" which was removed by Notification dated 01.03.2011. v. The absence of wilful misst ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n and not utilized, following the decision of the Jurisdictional High Court in the case of Commissioner of Central Excise Vs. Strategic Engineering Pvt. Ltd. [45 taxmann.com 541]. Therefore, it was submitted that mere taking of Cenvat itself would not compel assessee to pay interest as well as penalty. 4.4 The Ld. Counsel contended further that the refund application filed by the Appellant was still pending for disposal and hence the present demand raised to recover the 'wrongly availed' cenvat credit was without any rationale. 5. The Ld. Authorised Representative Ms. O.M. Reena representing the Department supported the findings of the Lower Authority and submitted that the Appellant had availed ineligible Cenvat credit during the period 2009-2011 which was liable to be recovered in terms of Rule 14 of CCR along with interest. It was pointed out that the Appellant had contravened the provisions of ACT and Rules with an intent to avail ineligible Cenvat Credit and hence the demand confirmed/ penalty imposed are sustainable. It was prayed for dismissal of the appeal filed by the Appellant. 6. We have carefully considered the submissions made by both the sides and also evidences av ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ble and not related to production Courier Services 3 It is not known from the invoice where the service was utilized Import of Services 4 Insurance covered other than machineries not eligible Insurance Auxiliary Services 5 Service utilized other than factory premises Security Services 11. The main allegation against the Appellant is that these are not input services as being not related to the manufacturing of the final products. The Appellant has voluntarily reversed the Cenvat credit availed on Rent-a-Cab service and insurance service to the tune of Rs.22,06,678/-. We have noted that the impugned Order-in-Original No. 29/2015 (C) dated 21.08.2015 passed by the Commissioner of Central Excise, Puducherry is an exparte order as it was noted in para 10 of the Order-in-Original that the Appellant has neither filed any reply nor attended the personal hearing opportunity granted. The Ld. Adjudicating Authority has observed that the Appellant has not produced necessary documents or any evidence as to examine their eligibility. Relying on the provision of Rule 9(6) of CENVAT Credit Rules, 2004, it was also observed that the burden of proof regarding admissibility of Cenvat cred ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 9.2014 issued and not attended the personal hearing granted by the Original Adjudicating Authority. 15. As the impugned Order-in-Original dated 21.08.2015 is an exparte order and as the Adjudicating Authority has observed that the Appellant have not produced necessary relevant documents to examine their eligibility for taking Cenvat credit, it is needed to remand the case to the Adjudicating Authority for examining all the duty paying documents and also for considering the Appelllant's eligibility in the light of binding precedents by various judicial authorities. 16. We find that the Appellant has reversed the credit voluntarily in respect of Rent-a-Cab service and also on personal insurance service which is not interfered with. 17. The Appellant has also raised a plea that interest is not demandable as Cenvat credit was merely taken and not utilized relying on the decisions rendered by the Chennai Tribunal in the case of Bharath Sanchar Nigam Ltd Vs. Commissioner of GST & Central Excise [Service Tax Appeal No. 42325 of 2014 dated 30.04.2024], and also the decision of the Jurisdictional High Court in the case of Commissioner of Central Excise Vs. Strategic Engineering Pvt. Ltd. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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