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2015 (11) TMI 467 - AT - Service TaxDenial of Cenvat credit - services received for training of persons in dispensing of CNG in retail outlets - Invocation of extended period of limitation - Held that:- Dispensing activity of CNG in the retail outlet is undertaken by personnel who are the employees of service provider and not of appellant. This service provider is discharging service tax under the category of business auxiliary services; Cenvat credit availed by the appellant is of the service tax paid on the services rendered for training of the personnel. - if services are utilised by the service provider Cenvat credit can be availed by such service provider and not any other assessee. - Credit cannot be allowed - on merit decided against the assessee. Extended period of limitation - appellant had availed Cenvat credit on the months of March and April 2009, the said availment of credit has been informed to Department when they filed monthly returns. In my considered view, appellant could have entertained a bona fide belief that having paid for the training of personnel, they can avail the Cenvat credit of the service tax paid and I do not see any element of suppression or misstatement of facts on the part of the appellant that too with intent to evade duty in a situation as is in this case. Entertaining a bonafide belief of availment of Cenvat credit of the service tax paid that too, when assessee pays for such services, is a rational interpretation that would be taken by any assessee, in a situation as is the case before me. In my view, show cause notice dated 14th October 2010 invoking the extended period is incorrect and impugned orders confirming the demands on the grounds of suppression and misstatement are unsustainable and liable to be set aside when it is on records and undisputed that appellant has been filing monthly returns with the authorities indicating therein the availment of Cenvat credit on the invoices raised by the service provider for training of personnel. - Impugned order is set aside - Decided in favour of assessee.
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