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2024 (1) TMI 778 - CESTAT NEW DELHICENVAT Credit - input services - input services were received by them prior to their obtaining registration and commencing of output service - Rule 2(l) of the Cenvat Credit Rules, 2004 - period November 2012 - HELD THAT:- The principle is that any service taken for providing output service is input service if such service is used by a provider of output service. The statutory provisions governing the Service Tax nowhere provides the time limit for utilisation of the input services nor does it require any one-to-one co-relation that input service availed in any particular month should be utilised when the assessee provides output service. The Revenue is required to take a practical approach that the process for providing output service takes time and it is essential on the part of the appellant to make proper arrangements so that output service can be provided without interruption. The period prior to providing the output services and billing its members for output services, the appellant incurred expenditure from April, 2012 to October, 2012 which were essential and used for providing output services. The Authorities below have held that the appellant is ineligible to avail Cenvat Credit of input service on the services which were used prior to registration. The issue is no longer res-integra as the same stands concluded in the earlier decision in JINDAL STEEL & POWER LTD. VERSUS COMMISSIONER OF CENTRAL EXCISE, RAIPUR [2008 (4) TMI 176 - CESTAT, NEW DELHI] where it was held that Thus the utilisation of credit was permissible in view of the extended definition of output service and in view of the fact they also started rendering output services. The appellant is entitle to claim the Cenvat Credit and therefore, the issue of any interest and penalty does not arise - the Appellate Authority has passed the impugned order without application of mind as the impugned order is verbatim of the Order-in-Original and needs to be set aside on this ground itself - the impugned order is set aside and the appeal stands allowed.
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