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TMI Blog2015 (8) TMI 953X X X X Extracts X X X X X X X X Extracts X X X X ..... vat Credit for payment of their service tax liability. A Show cause notice dated 16.4.2014 was issued to the appellant alleging that the Cenvat Credit availed by them during the period 2011-12 is inadmissible as the credit is not supported by proper and valid documents. The allegation raised is that the invoices of the input services contained the address of Delhi office of the appellant which is unregistered premises. The proceedings were finalized by the Order-in-Original dated 27.8.2014 which disallowed the Cenvat Credit of Rs. 1,87,391/- and imposed equal penalty alongwith interest. In addition, there was also imposition of late fee of Rs. 20,000/- for late filing ST-3 returns under section 70 of Finance Act, 1994 read with Rule 7 of Se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the goods or taxable service, assessable value, Central Excise or Service tax registration number of the person issuing the invoice, as the case may be, name and address of the factory or warehouse or premises of first or second stage dealers or provider of output service, and the Deputy Commissioner of Central Excise or the Assistant Commissioner of Central Excise, as the case may be, is satisfied that the goods or services covered by the said document have been received and accounted for in the books of the account of the receiver, he may allow the CENVAT credit. This proviso also does not state that the premises of the recipient has to be a registered premises in order to avail the Cenvat Credit. Further it gives a discretion to the D ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... st before the audit of the Department. It is also stated that the appellant is a small company with paid up capital of Rs. 1,00,000/- only and the total turnover for the relevant period is only Rs. 42,70,594.65. Taking these aspects into consideration, I am of the view that the late fee imposed under section 70 of the Finance Act can be reduced to Rs. 5,000/-. For the reason above, the penalty of Rs. 10,000/- imposed under section 77 of the Finance Act, 1994 is set aside. 7. In the result, the impugned order to the extent of disallowance of Cenvat Credit of Rs. 1,89,391/- is set aside with consequential relief to the appellant. The penalty of Rs. 10,000/- imposed under section 77 of the Finance Act, 1994 is also set aside. The late fee imp ..... X X X X Extracts X X X X X X X X Extracts X X X X
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