Cenvat credit on cellular and insurance services remanded after additional evidence was ignored and natural justice was not followed.

Cenvat credit on service tax paid for cellular and insurance-related services was denied because the supporting documents were said not to have been produced to show use in or in relation to manufacture of final products or output services. The record, however, indicated that the appellant submitted telephone bills and insurance papers after the personal hearing, and those materials were not considered before the order was passed. The matter was remanded for fresh decision because the claim could not be finally rejected without examining the additional evidence and giving a proper opportunity of hearing in accordance with natural justice.

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Issues: Whether denial of Cenvat credit on service tax paid for cellular services and insurance-related services was sustainable when the appellant claimed to have submitted supporting documents after the personal hearing.

Analysis: The denial rested primarily on the view that relevant documents had not been produced to establish use of the services in or in relation to manufacture of final products or output services. The record showed that the appellant had, after the personal hearing, submitted evidence including telephone bills and insurance papers, but those materials were not taken into account while passing the order. In these circumstances, the claim could not be finally rejected without considering the additional evidence and affording a proper opportunity of hearing.

Conclusion: The appeal was allowed by way of remand, and the Commissioner (Appeals) was directed to consider the evidence and decide the matter afresh in accordance with natural justice.

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