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2013 (10) TMI 388 - AT - Service TaxStay application - Cenvat Credit - Nexus between output service and input service - Rent-a-cab service and Air Travel agents Service - Held that:- In the case of Rent-a-cab service and Air Travel agents Service, the applicants have produced sample invoices. It is not proper to deny such credit without any material showing that they were making any false declaration regarding the usage of such service in relation to providing output service. It is not possible to prove nexus between services which are intangible with output services which are intangible through documents unless extensive documentation is done and such documents are scrutinized. Such procedure is not envisaged under the Cenvat scheme. Checks, if required, are to be done through auditing of the books of accounts and checks of sample vouchers at the time of audit. Asking an assessee to prove nexus for each and every credit with output service can only be a attempt to tire out the assessee which should not be asked for unless there is some material to doubt the veracity of the accounts and vouchers - there are credits taken on services which got excluded from definition of ‘input services’ from 01-04-11 for the reason that services were received prior to 01-04-11 though bills were received after 01-04-11. This issue is not raised in SCN and adjudicated - Stay granted.
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