Rectification of Mistakes in Final Order: CESTAT grants Revenue's application, modifies decision on cenvat credit & tax liability

The CESTAT allowed the Revenue's application for rectification of mistakes in the Final Order, acknowledging errors in the denial of cenvat credit and the wording regarding tax liability on renting immovable property. The Final Order was modified to delete the denial of cenvat credit and state that the appeal was partly allowed. The rectifications were made based on the errors identified by the Revenue, leading to the modification of the Final Order.

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Issues: Rectification of mistake in the Final Order regarding eligibility of cenvat credit and tax liability on renting of immovable property.

In the judgment, the Revenue filed an application for rectification of mistake in the Final Order passed by the CESTAT. The grounds for rectification included the observation in para 4 of the Final Order where the appellant was denied cenvat credit for service tax paid on Rent-a-cab service. The Revenue argued that the issue of eligibility of cenvat credit was not raised in the Show Cause Notice or before the lower authorities, making it an error apparent on record. Additionally, the tax liability of the appellant in respect of Renting of Immovable Property was confirmed in para 3 of the Final Order, while penalties were set aside. However, in para 5, the impugned order was set aside and the appeal was allowed, which was deemed a mistake by the Revenue.

During the hearing, the Revenue contended that the Final Order's decision on cenvat credit entitlement and the wording in paras 3 and 5 were errors that needed rectification. The Advocate for the respondents agreed that these mistakes required correction. The CESTAT, after considering the arguments, found the errors pointed out by the Revenue to be mistakes apparent on the face of the record. Consequently, the Final Order was ordered to be rectified and modified. The rectifications included deleting para 4 of the Order, which denied cenvat credit, and substituting para 5 to state that the appeal was partly allowed. The CESTAT allowed the rectification on the terms indicated.

In conclusion, the judgment addressed the rectification of mistakes in the Final Order related to the eligibility of cenvat credit and the tax liability on renting of immovable property. The CESTAT acknowledged the errors pointed out by the Revenue as mistakes apparent on the record and ordered the necessary rectifications to be made to the Final Order.

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