Home Case Index All Cases Service Tax Service Tax + AT Service Tax - 2024 (1) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2024 (1) TMI 936 - AT - Service TaxCENVAT Credit - inputs, capital goods and input services received at places other than their registered premises - demand of interest and penalty - HELD THAT:- There is no dispute in this case regarding procurement of such goods and services on payment of appropriate excise duty/services. Also there is no dispute regarding utilisation of such goods/services either directly or indirect by the Appellant to provide output service (telecommunication service). The credit has been held as irregular only on the ground that such inputs, capital goods and input services on which Cenvat credit has been availed were received at places other than their registered premises. The issue has been settled in favour of the Appellant in the case of M/S. ORIENTAL INSURANCE COMPANY LIMITED VERSUS COMMISSIONER OF CENTRAL EXCISE & SERVICE TAX, LTU, NEW DELHI [2023 (6) TMI 646 - CESTAT NEW DELHI] wherein it has been held that registration of premises with service tax department is not a condition precedent for claiming CENVAT credit. Demand of Interest - HELD THAT:- The CENVAT credit availed and utilized by the Appellant on the inputs, capital goods and input services received in the premises other than the registered premises cannot be denied as long as the said inputs, capital goods and input services are utilized in providing the output services. As there is no dispute regarding the utilization of the said inputs, capital goods and input services in providing output services in this case, we hold that the impugned order denying the credit is not sustainable. Since the demand of irregular credit is not sustainable, no question of demanding interest. Penalty - HELD THAT:- There is no evidence brought on record by the department to substantiate the allegation of wilful misstatement or suppression of any facts. Accordingly, the extended period not invocable in this case. For the same reason penalty imposed under Rule 15 of the CENVAT Credit Rules, 2004 read with Section 78 of the Finance Act, 1994, is also not sustainable. The impugned order set aside - appeal allowed.
|