The Delhi Bench of Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that Cenvat credit scheme is a beneficial scheme for the taxpayers and the benefit of this scheme cannot be blocked or taken away from the taxpayers on technical and procedural grounds.
The bench of Dr. Rachna Gupta (Judicial Member) has observed that the challan number in show cause notice is nothing but a typographical error. Substantial benefit which is otherwise available to the appellant cannot be denied merely on the basis of the typographical error that too, committed at the end of the department.
The appellant/assessee is engaged in providing taxable “service” relating to “Renting of Immovable Property”, Transport of Goods TransportAgency Service, “Business Auxiliary Service”, Maintenance or Repair Service” and “Scientific and Technical Consultancy Service” which are covered under definition of “service” under provisions of Section 65B(44) of the Finance Act, 1994 and is not covered under services specified in “Negative List” under Section 66D of the Finance Act, 1994.
Department alleged that the appellant has wrongly taken/availed Cenvat credit of Input Services amounting to Rs. 18,09,998/- (including Cesses) during the period from April 2017 to June, 2017 in contravention of Rule 9(1) of the Cenvat Credit Rules, 2004. The same is proposed to be reversed along with proportionate interest as per Section 75 of the Finance Act, 1944 and the appropriate penalty as per Section 77(2) of the Act.
The proposal was confirmed. In the appeal against the order, the demand has been set aside. However, the demand is still confirmed and appeal has partly been rejected by the Commissioner (Appeals).
The CESTAT allowed the appeal and quashed the order rejecting Cenvat credit.
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Case Details
Case Title: M/s Shriram Rayons Versus Commissioner of CGST & Central Excise, Udaipur
Case No.: Service Tax Appeal No. 50606 of 2024 – SM
Date: 24/01/2025
Counsel For Appellant: S.C. Kamra & Shri N.D. Dube
Counsel For Respondent: Manish Kumar Chawda
