2018 (3) TMI 928 - AT - Service Tax

Appeal allowed on credit denial and penalties, remanded for fresh consideration by Tribunal

The appeal was allowed by way of remand as the Tribunal set aside the modified Order-in-Original disallowing credit and reworking penalties. The case ... CENVAT credit - denial on the ground of inadequacy of invoices issued by the service providers - Held that: - there is a dispute with regard to whether the appellant has actually made the payment which he has claimed to have made and if so, as to when he made the payment to the service provider - matter remanded back to the original authority to consider the submissions of the appellant afresh - appeal allowed by way of remand. Issues:Appeal against modified Order-in-Original disallowing credit and reworking penalty.Analysis:The appeal was directed against an order modifying the Order-in-Original, disallowing credit and reworking penalties. The appellant, a Cable TV Network Services provider, availed cenvat credit on input services but faced a show-cause notice proposing to deny credit on certain inputs due to inadequate invoices and imposing penalties. The original authority confirmed the demand, interest, and penalties, leading to the appeal before the Commissioner. The Commissioner partly allowed the appeal, leading to the present appeal.The appellant argued that the impugned order did not consider the Cenvat Credit Rules, 2004 properly. The denial of credit was based on delayed payment of invoices, but the appellant contended that payment was made subsequently, and only interest could be claimed for the delay, emphasizing that substantive benefits should not be denied due to procedural issues.On the other hand, the Assistant Commissioner defended the impugned order, highlighting the disallowance of input service credit for certain invoices due to non-payment by a specified date. The Tribunal, after hearing both parties and reviewing the records, noted a dispute regarding the actual payment made by the appellant and the timing of such payments. As clarity was lacking in the impugned order on this matter, the Tribunal set aside the order and remanded the case to the original authority for a fresh consideration of the appellant's submissions, emphasizing compliance with natural justice principles. Consequently, the appeal was allowed by way of remand.The operative portion of the Order was pronounced in Open Court on 11/01/2018.