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2017 (4) TMI 995 - CESTAT HYDERABAD

2017 (4) TMI 995 - CESTAT HYDERABAD - TMI - CENVAT credit - input services distribution (ISD) - duty paying documents - the documents on which the credit has been taken are not proper in terms of Rule 9 of CCR, 2004 - time limitation - Held that: - Proviso to Rule 9 states that whenever there is a doubt regarding the documents on which credit has been availed the concerned AC/DC can allow the credit after being satisfied that the credit has been properly accounted - The non registration of the H .....

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r per: Sulekha Beevi, C.S.] The above appeal is filed against the denial of CENVAT credit on input services. 2. The appellants are registered with Central Excise Department and are engaged in manufacture of Lead Acid Batteries. They are availing the facility of CENVAT credit on input services. During the period from 2008-2009 to 2010-2011 it was observed that appellants have availed input service tax credit of ₹ 8,50,952/- on the basis of inter office memos issued by the Head Office at Hyd .....

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Head office at Hyderabad has units at different places. The service tax was paid on the commission charged by banks in regard to the bank guarantee etc. The appellant received certificates from the banks every month for the service tax paid by them. These certificates were issued in the name of the Head office and later the Head office forwarded memo/documents to the respective manufacturing units, who took credit upon these office memos. He argued that the Department does not dispute the tax p .....

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28-CESTAT-DEL] to canvass the proposition that credit cannot be denied for the reason that the Head office has not obtained ISD registration. 4. The other allegation is that the documents on which credit is taken are not valid documents. The Ld. Counsel argued that though appellant has taken credit on the office memos forwarded by the Head office, the said documents establish the payment of service tax as well as other details required as per Rule 4A of Service Tax Rules, 1994. He relied upon th .....

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d credit statements filed by the appellant. The Show Cause Notice dated 08.05.2012 covering the period April 2008 to December 2010 has been issued invoking extended period alleging suppression of facts. That there is no evidence to establish that appellant has suppressed facts with intent to evade payment of duty. Therefore the demand is time barred. It is also argued by the Ld. Counsel that the penalty imposed under Rule 15 of CENVAT Credit Rules, 2004, is wrong. That during the relevant time, .....

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ot valid documents for taking credit as per Rule 9 of CENVAT Credit Rules, 2004. Further, the Head office has not taken ISD registration and therefore, the credit availed by the appellants are not proper. He submitted that the irregular credit would not have come to light for the verification by department and therefore the show cause notice issued invoking extended period is legal and proper. He also pointed out that appellant has not put forward the ground of limitation in the grounds of appea .....

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f Rule 9 (1) (f) of CENVAT Credit Rules, 2004. Accordingly, when Revenue did not find that the service tax realized through debit note has not gone into treasury, there is no scope to deny relief to the appellant. Added to this, the service provider has realized certain reimbursement of expenses while providing consultancy service in terms of debit note appearing at pages 51 to 55 of appeal folder. Therefore, once assessable value of service provider is intended to include even the reimbursement .....

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