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2024 (1) TMI 583 - AT - Service TaxCENVAT Credit - proper document under Rule 9(g) of CENVAT Credit Rules read with Rule 4A(2) of Service Tax Rules, 1994 or not - ISD themselves did not have proper proof of payment to the service provider - Extended period of Limitation - HELD THAT:- When the availment of services and admissibility of credit are not questioned at the end of the appellant or the ISD, CENVAT credit cannot be denied; substantive benefit of CENVAT credit cannot be denied just because there were some procedural infractions. Learned Commissioner seeks to confirm the demand on the basis of the finding that the appellants have not provided further requisite information. However, ongoing through the records of the case, it is found that audit was conducted on 26.04.2010, 27.04.2010 and 25.08.2010; Department sought certain clarifications vide letter dated 01.10.2010 and the appellants have submitted the same vide letter dated 22.12.2010.Thereafter, the Department did not conduct any enquiries for three long years and have issued a show-cause notice dated 12.08.2013. It was open to the Department to collect whatever information that was required to satisfy themselves before the issuance of show-cause notice. The Department requires to prove the inadmissibility of credit or any lapses on the part of the appellant in a positive proactive manner rather than on the averment that the appellants failed to supply the requisite information. However, as the admissibility of CENVAT credit not being in dispute, the same cannot be denied for procedural inadequacies, more so, when Department neither disputed the documents submitted by the appellants nor conducted any further verification. Time limitation - HELD THAT:- The audit was conducted on 26.04.2010, 27.04.2010 and 25.08.2010; Department sought certain clarifications vide letter dated 01.10.2010 and the appellants have submitted the same vide letter dated 22.12.2010; thereafter, for three years, Department did not take any action and the show-cause notice was issued on 12.08.2013; the appellants have been regularly submitting the ST-3 Returns. Moreover, keeping in view the fact that the appellants are a PSU, it is found that no mala fide intention can be attributed to the appellant. The appeal is allowed both on merits and limitation.
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