2023 (9) TMI 645 - CESTAT CHANDIGARH

CENVAT Credit - denial on account of nexus of input service with output service - Customs House Agent Service - Goods Transport Agency Services - Banking Services - Commercial & Industrial Construction Services etc. - penalties - HELD THAT:- The appellants are eligible for availing credit on Commercial & Industrial Construction Service for the period prior to 01.04.2011 - on this count, credit of Rs. 207/- is not admissible to the appellants. Rest of the credit is, however, admissible.

Photocopy Service - HELD THAT:- The credit of Rs.32,795/- is admissible; similarly, CENVAT credit of Rs.3,658/- on Repair Services is also admissible. The appellants have not disputed the denial of credit of Rs.3,70,800/- on Renting of Property Service and have reversed the same. Thus, a total of Rs.3,71,007/- is not admissible.

Customs Clearance Services - Tour & Travels Services - HELD THAT:- The impugned order records that the appellants have not produced invoices etc. to prove that the credit is correctly availed by them. While holding in principle that credit on these two services is admissible to the appellants, the issue requires to go back to the Adjudicating Authority to calculate the admissible credit on the basis of the evidence that may be produced by the appellants.

Penalties - HELD THAT:- As the issue pertains to interpretation wherein most of the issues were settled by the decisions of this Tribunal at a later date, the appellants cannot be held to have any intention to evade payment of duty. Therefore, no penalties are imposable.

The Adjudicating Authority shall calculate the credit admissible on the two disputed services i.e. Customs Clearance Services and Tour & Travels Services - Appeal allowed by way of remand.