The Delhi Bench of Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that the name of consignee or service receiver on invoice is a basic requirement for availing cenvat credit.
The bench of Binu Tamta (Judicial Member) and Hemambika R. Priya, (Technical Member) has observed that to be a valid document in terms of Rule 9(2), it is necessary that the document contains all particulars as mentioned therein to avail the credit. The name of the consignee or service receiver on the invoice is the basic requirement for availing the CENVAT Credit.
The appellant/assessee is engaged in the manufacture of Condenser Coils, Evaporative Coils and Air Conditioners. During the course of audit, it was observed that the appellant had wrongly availed CENVAT Credit of service tax paid on ineligible input services during the period, April 2015 to March 2016.
A Show cause notice was issued to the appellant invoking the extended period of limitation. The demand along with interest and penalty was confirmed.
The appeal filed by the appellant was dismissed by the impugned order except on the limited point that interest is not recoverable from the appellant as their closing balance was never less than the amount of CENVAT Credit in question.
The issue for consideration is whether CENVAT Credit on advertisement services, tour operator services used for consignment agents and installation/dismantling of machinery at Haridwar Unit of the appellant is admissible.
The tribunal held that the Credit of service tax of Rs.91,492/- taken in respect of invoices, which are not in the name of the assessee is clearly not admissible. The appellant was, therefore, not eligible to avail the CENVAT Credit on the basis of the invoices which were not in their name.
Case Details
Case Title: M/S. Leel Electricals Ltd. Versus Commissioner Of CGST & Central Excise
Case No.: Excise Appeal No. 50277 Of 2019
Date: 14/02/2025
Counsel For Appellant: None
Counsel For Respondent: Ranjan Prakash
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