Home Case Index All Cases Service Tax Service Tax + AT Service Tax - 2015 (7) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2015 (7) TMI 756 - AT - Service TaxDisallowance of Cenvat credit - Respondent did not clear the goods in terms of the invoice which was later on cancelled - Held that:- there is no one to one relation of input and output to be established to claim Cenvat credit. The moment input reaches the factory and those are used for manufacture, law permits the manufacturer to avail input credit. Therefore, one to one relationship is immaterial to law and disallowance of Cenvat credit of the amount of ₹ 1,07,207/- is uncalled for. Following the principle of law laid down by Hon’ble Supreme Court of India, in the case of C.C.E., Pune v. Dai Ichi Karkaria Ltd. [1999 (8) TMI 920 - SUPREME COURT OF INDIA] and by the High Court of Himachal Pradesh in the case of Ranbaxy Laboratories Ltd v. C.C.E., Chandigarh [2012 (4) TMI 369 - HIMACHAL PRADESH HIGH COURT], appeal is dismissed and respondent shall be eligible to get Cenvat credit. Service tax paid to avail Pandal and Shamiana service by respondent was to preserve raw material i.e. coal from rain - Held that:- Once there was pleading of securing of the raw material from rain by Pandal and Shamiana and such service availed was to protect coal from rain, the department should have carried out an enquiry from the provider of service as to the nature of the service provided and genuinity of the claim. But Authority proceeded by the conception that the similar services was not availed in subsequent year for no reason. Assertion of the Authority could have been proved had there been enquiry to ascertain genuinity of the claim. But nothing on record is in that regard. - in absence of justification by an independent enquiry, mere suspicion or assumption shall not come to rescue of Revenue - Decided against Revenue.
|