TMI Blog2019 (5) TMI 154X X X X Extracts X X X X X X X X Extracts X X X X ..... were provided, Learned Counsel replied in negative. Therefore, merely based on the assertions of the Learned Counsel, I find it impossible to come to any conclusion that the statement given by the appellant established that the services from these seven premises - there is not even a casual remark or mention in any of these invoices that the services were rendered from any of the seven disputed premises. In the absence of any evidence whatsoever, I am unable to come to a conclusion with these invoices that output services were rendered from any of the seven disputed premises. Extended period of limitation - penalty - HELD THAT:- It was incumbent upon the appellant to ensure that they take credit as per the rules and not in violation of them. I do not find that the appellant had any reason to believe that they would have been entitled to CENVAT credit on the input services when they have not even kept a record of having rendered any output services from these seven premises - the SCN demanding the recovery of the CENVAT credit along with interest invoking extended period of limitation and proposing imposition of penalty under Section 78 was correctly issued. Appeal dismissed - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vices on which credit was taken were used exclusively for setting up of new premises on account of which in terms of Rule 2(l) of CENVAT Credit Rules 2004 such services excluded from the definition of input services and thus ae ineligible for credit. iii) The appellants had not provided any taxable output services from the seven new premises during the period when they took credit of input services. 5. The First Appellate Authority examined each of the above 3 grounds. On the first aspect he held that as decided by the Hon ble High Court of Karnataka in the case of mPortal India Wireless Solutions Private Ltd., Vs CST, Bangalore [2012 (27) STR 134-KAR] and GE India Exports Private Ltd., Vs CCE ST, Hyderabad-II [2016 (44) STR 693 (Tri-Hyd)] registration is not a requirement for availing CENVAT credit on tax paid on input services. Therefore the original authority was wrong in rejecting credit taken on this ground. As far as second issue is concerned the First Appellate Authority held that the decision made by the original authority has no factual or legal basis. The credit was sought to be taken on services which were used in setting up of facil ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cation for registration of the seven new premises because of the confusion created by the department. Although, they were registered as a centralised unit covering both their Hyderabad and Noida units and have been filing ST returns, accordingly after the introduction of ACES software by the department they were told that theirs is an individual registration. They were pursuing with the department to sort out this issue and therefore there was a delay in applying for the registration of the seven new premises. At any rate, this delay in registration would not disentitle them to CENVAT credit on the input services received prior to the date of inclusion of these seven premises in their centralised registration. Although the original authority has held it against them, the First Appellate Authority has correctly held in their favour. He would also submit the First Appellate Authority has also held in their favour on the second issue discussed above. The only dispute which remains is the provision of output services from these seven new premises during the period. He would assert that they had indeed rendered services from these seven new premises during the relevant period but had no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a) whether provision of output services are necessary for entitlement of CENVAT credit under CENVAT Credit Rules 2004 (whether such output services are exported or rendered domestically); and b) whether there is sufficient evidence to show that the output services were rendered by the appellant from the seven new premises during the relevant period. As far as the first question is concerned Rule 3 of CENVAT Credit Rules 2004 is the only basis for anyone taking CENVAT credit. This rule provides for CENVAT credit to a manufacturer or a provider of output services of the tax/duty paid on inputs or capital goods or input services received by the manufacturer or provider of output services. In other words, the provision of output services is an essential requirement for entitlement to CENVAT credit under Rule 3 of CENVAT Credit Rules 2004. Coming to the second issue, the Learned Counsel for the appellant vociferously asserted that they had indeed rendered output services from these seven premises. I have considered his assertion and documents which he submitted in support. The rent agreement proved that these premises were rented by them bu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... premises. In this factual matrix, I find the appellant has failed to provide even a shred of evidence to show that output services were rendered from these seven premises. On a specific query from the Bench if the Learned Counsel had any other evidence or could produce any document to show that the output services were rendered from these premises, Learned Counsel replied in negative. In view of the above, I have no option but to hold that the appellant has failed to demonstrate that they have rendered output services from these seven premises. Therefore, the invoice of input services used in these premises cannot be used to avail CENVAT credit under Rule 3 of CENVAT Credit Rules 2004. 10. It was incumbent upon the appellant to ensure that they take credit as per the rules and not in violation of them. I do not find that the appellant had any reason to believe that they would have been entitled to CENVAT credit on the input services when they have not even kept a record of having rendered any output services from these seven premises. In view of the above, I find that the show cause notice demanding the recovery of the CENVAT credit along with interest invoking ext ..... X X X X Extracts X X X X X X X X Extracts X X X X
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