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2015 (10) TMI 577 - CESTAT NEW DELHI

2015 (10) TMI 577 - CESTAT NEW DELHI - TMI - Refund of CENVAT Credit under Rule 5 of CENVAT Credit Rules, 2004 Assessee holds that refund should not be denied on the grounds of incomplete information given in invoice and Department should take liberal approach in such cases Further contends denial of credit on the ground that services do not qualify as input services is not sustainable Respondent contends sub clause (1) of Rule 9 of the CENVAT Credit Rules provides for the details to be co .....

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se of Coca Cola India (P) Ltd. Vs. CCE Pune III [2009 (8) TMI 50 - BOMBAY HIGH COURT]and CCE, Nagpur Vs. Ultratech Cement Ltd. [2010 (10) TMI 13 - BOMBAY HIGH COURT ] Appeal allowed and decided partly in favour of the assessee. - Appeal No. ST/58057/2013-ST[SM] - Final Order No. 52731/2015 - Dated:- 15-7-2015 - Sulekha Beevi CS, Member (J) For the Appellants : Shri Puneet Aggarwal & Shri Pawan Arora, Advs For the Respondent : Shri R K Gupta, Adv ORDER Per Sulekha Beevi CS The appeal is fil .....

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eriod October, 2010 to December, 2010 under Rule 5 of CENVAT Credit Rules, 2004 read with Notification No. 5/2006-CE (NT) dated 14.03.2006. 2. The Adjudicating Authority allowed the refund claim in part against which the appellant filed appeal. The Commissioner (Appeals) allowed refund for some services but upheld rejection of part of refund claim on the ground that invoices do not have complete address, invoice not having PAN based registration number, and service is not eligible as input servi .....

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it Team of the Department. That records are thoroughly audited upto 2012. Further that there was no dispute regarding the unutilized CENVAT Credit lying in the account of the appellants. I do find force in these contentions. There is no allegation raised in the show cause notice as to the total amount available as unutilized credit in the account of the appellants. In such circumstances, it was not proper for the Commissioner (appeals) to direct to check and verify or recompute the total credit .....

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the invoices contain complete address of the appellant, the authorities below have rejected the claim. Remaining invoices contain the city name in which the premises of the appellant is situated. In addition, the appellants produced the Chartered Account Certificate. The learned counsel relied on Circular No. 120/01/2010-ST dated 19.01.2010 and submitted that it has been clarified in this circular that in the case of incomplete invoices the department should take liberal approach in view of judi .....

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ice tax from the service provider on its old registration number, the credit cannot be denied to the service recipient as the appellant has no control over the service provider in directing him to obtain PAN based registration and state the same in invoice. He relied on the decision in Imagination Technologies India (P) Ltd Vs. CCE-Pune-III, 2011 (23) STR 661 (Tri-Mumbai) . 5. These arguments were controverted by the learned Departmental Representative who supported the findings in the impugned .....

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was introduced to facilitate this, and that the rejection of credit is proper. 6. On perusal of records and hearing the submissions of both sides, it is seen that the respondents do not dispute the transactions as per these invoices. So also they do not have a case that these input services/invoices have not been properly accounted. The allegation is that invoices are incomplete for want of complete address of the appellant and absence of PAN based registration number. The invoices show the name .....

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o Rule 9 (2) casts a discretion upon the officer to allow credit in the case of defect of documents, if the officer is satisfied that they have been properly accounted. It is no doubt that correct details / contents in the documents will help the department to verify whether such services were availed by the service recipient and also to cross check whether these services were provided at the end of the service provider. The department has no case that in inquiry they found that these transactio .....

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he above reasons, I am of the view that the denial of credit on the ground of incomplete address and invoices not containing PAN based registration number is unjustified. I hold that appellant is eligible for credit on these invoices. 7. It now remains to consider the denial of credit on the ground that services do not qualify as input services as per the definition in CENVAT Credit Rules, 2004. These services are Rent-a-cab services, courier services, guest house services, Power Audit Services, .....

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s do not have nexus with the output services. The credit on courier services is denied for the reason that these services are utilized for local correspondence and not used in connection with export of services. Credit on guest houses services was denied though guest houses are maintained for the appellant's business use and for stay of business executives. Power audit service was denied stating that it is not essential service. Power audit services were availed by appellant to reduce power .....

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g of equipments like speakers, mikes, podium projectors was denied. According to appellant these services were availed for the various in house training programmes. Professional services were availed for best practice report, filing tax returns, retainership fee etc, and the credit on these services were denied on the ground that these services are not related to output services. The cleaning services (dish washing) and outside lunch (catering) are seen denied even though the primary adjudicatin .....

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