Home Case Index All Cases Service Tax Service Tax + AT Service Tax - 2022 (10) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2022 (10) TMI 195 - AT - Service TaxCENVAT Credit of service tax paid not used by the appellant in manufacture of excisable goods - invoces were issued to other units and not to the appellant’s unit - suppression of facts - wilful misstatement in contravention of rules with the intent to evade payment of service tax - time limitation - HELD THAT:- From admitted facts, it becomes clear that the appellants have availed the input services at their captive mines. Though the captive mines have separate registration but at the same PAN No. as that of the appellants and as such both are so associated that they have interest, directly or indirectly in the business of each other. Also for the reason that coal extracted in these Mines is the raw material for appellants to manufacture their final product. Moreover the captive use of coal has no where been denied - The invoices are mentioning all the details as are required as per rule 9 (1)(f) of Cenvat Credit Rules. The case of appellant squarely gets covered under the purview of Rule 2 (l) of Cenvat Credit Rules and also under proviso to Rule 9(2) of CCR, 2004. Hence the findings that appellants case is not covered under 2 (l) of CCR are absolutely wrong. The findings of Commissioner (Appeals) are accordingly, held as being liable to be set aside. Tour operator services - Department has alleged those services to have been personally consumed by the employees of the appellant, hence, were ineligible for Cenvat credit - HELD THAT:- It becomes clear that the visit of the employees was purely for enhancing their skills for the better output of the final product of the appellant. Hence, those services have wrongly been alleged to have been personally consumed services. Those services also to be eligible input service for availment of Cenvat credit. With these observations all the findings of commissioner (Appeals) qua the merits of the impugned aforementioned (a) & (b) issue are held as liable to be set aside. Suppression of facts - wilful misstatement in contravention of rules with the intent to evade payment of service tax or not - HELD THAT:- The Show Cause Notice has been issued based upon the scrutiny of appellant’s own document maintained by them in their regular course of business (the documents were in the form of invoices duly entered in appellants record). There is also no denial for the regular filing of the returns by the appellant. It becomes clear that there is no suppression of facts as is alleged by the Department - the Show Cause Notice has not specified any commission or omission which may reveal intention to evade the payment of duty. The only allegation is that had the Department not conducted audit, the appellant would have succeeded to defraud the Government Exchequer. Time Limitation - HELD THAT:- Show Cause Notice being barred by time were raised before original adjudication authority also as is apparent from para E of the reply given to Show Cause Notice but the authority has not given any speaking finding identifying and specifying the acts of omission and commission with supporting evidence warranting invocation of extended period of limitation. The adjudication has failed on merits as well as on point of limitation The findings are therefore hereby set aside - Appeal allowed - decided in favor of appellant.
|