Input credit claim remanded after late production of invoices and challans justified fresh examination of tax liability.

Rejection of input credit for non-production of invoices and challans was set aside because the assessee later produced the missing records before CESTAT and explained that they had been misplaced during office shifting. The Tribunal accepted the explanation, condoned the delay in producing the documents, and held that eligibility to credit had not been examined on the full record. The matter was remanded to the Original Authority for fresh adjudication after permitting production of the documents and for reconsideration of the related service tax, interest and penalty liability.

---

---

Issues: Whether the rejection of input credit for want of invoices and challans required interference and remand for reconsideration of the assessee's entitlement to credit and consequential service tax demand, interest and penalty.

Analysis: The assessee had filed the ST-3 returns for the relevant period and had claimed input credit, but the supporting invoices and challans were not produced before the lower authorities. The missing documents were later produced before the Tribunal, along with an explanation that the records had been misplaced during shifting of the office premises. The explanation for non-production was accepted, and the delay in producing the documents was condoned. Since the eligibility to input credit had not been examined on the basis of the full record, the matter required fresh consideration by the Original Authority.

Conclusion: The rejection of credit was set aside for fresh adjudication and the matter was remanded to the Original Authority to permit production of documents and to reconsider the claim as well as the consequential liability to service tax, interest and penalty.

---