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2023 (1) TMI 1184 - AT - Service TaxCENVAT Credit - providing non-taxable output services also i.e. trading of goods as well as exempted output services - non-maintenance of separate records - Rule 6(2) of Cenvat Credit Rules, 2004 - failure to produce any of the original input service invoices for verification by audit officers and submission of randomly selected photocopies of input services invoices on Cenvat credit availed - HELD THAT:- The appellant has violated provisions of Rule 5A (2) of the Service tax Rules, 1994. Further they had availed Cenvat credit amounting to Rs. 7,10,60,401/- by making some consolidated entries in their Cenvat credit register during the period June 2014 to March 2015, which involves hundreds of input service invoices of 2007-2008 to 2013-14. The Cenvat credit has been availed without any proof of having valid documents as prescribed under Rule 9 of the Cenvat Credit Rules, 2004. They have not fulfilled the conditions of Rule 6(3A) of Cenvat Credit Rules 2004 - there is no manipulation in Cenvat credit register and all the documents and information has been provided to the department. All the original invoices are always available at their respective regional office where the input service is received. In this circumstance, the matter should go back to the adjudicating Authority for verification of the invoices /documents and Cenvat credit register maintained by the appellant - this matter is remanded to the adjudicating authority to give another opportunity to the appellant to establish its entitlement. The dispute relating to admissibility of Cenvat credit in the absence of exercise of option to avail proportionate Cenvat credit under the provisions of Rule 6 of Cenvat Credit Rules 2004 is also remanded to the adjudicating authority for a fresh decision - the condition in Rule 6(3A) to intimate the department is only a procedural one and such procedural lapse is condonable and denial of substantive right for such procedural failure is unjustified. The matter is remanded to the adjudicating authority to decide the matter a fresh after verifying the Cenvat records of the assessee - the appeal are allowed by way of remand to the adjudicating authority.
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