Home Case Index All Cases Service Tax Service Tax + AT Service Tax - 2019 (11) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (11) TMI 828 - AT - Service TaxAvailing CENVAT credit of service tax under VCES Scheme - Import of services - Reverse Charge - Management Consultancy Services - appellant received various services from foreign associated company - foreign based company was not having any office in India - penalty - HELD THAT:- The fact is that the said payment was made in terms of VCES Scheme which is special piece of legislation allowing assessee’s to pay tax or duty, which has not been paid by them at the requisite point of time. The fact that the duty was not paid at the time of import of service is indicative of a situation that the short levy or non levy has occurred on account of suppression of facts. Had the scheme not been floated by the Government of India, proceedings would have been initiated against the assessee by way of issuance of a show cause notice raising the demand in question and confirming the same alongwith interest and penalty. It is beyond doubt that the payment of duty on the invoices raised under VCES Scheme has to be held as payment by way of raising supplementary invoices, which was on account of misstatement or suppression with intent to evade payment of duty. In such a scenario, the Cenvat credit of service tax paid by the appellant would not be available to the appellant in terms of provisions of Rule 9(1)(b). The further fact of the service having no nexus with the manufacturing activity is not required to be adverted to, when the appellant is not entitled to credit in principle - demand upheld. Penalty - HELD THAT:- The entire credit was availed by the appellant by reflecting the same in their Cenvat credit account which were intimated to the Revenue and otherwise also it is noted that the issue is a bona fide issue of interpretation of the provisions of law - there is no justifiable reasons to impose penalty upon the appellant. Appeal disposed off.
|