Tribunal grants appeal for CENVAT Credit denial, preventing double jeopardy in tax matters.

The Tribunal allowed the appeal against the denial of CENVAT Credit (E/70/2011) for utilizing goods in providing services and discharging Service Tax liability. Additionally, the demand of duty against the utilization of denied CENVAT Credit was set aside (ST/526/2011) to prevent double jeopardy for the appellant, emphasizing the principle of avoiding double jeopardy in tax matters.

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Issues:
1. Denial of CENVAT Credit
2. Demand of duty against utilization of CENVAT Credit

Analysis:
1. The appellant, engaged in providing services of "Repair and Maintenance Services" and "Erection Commissioning and Installation Services," was involved in the repair and re-salvaging of Ammonia Super Heaters. The appellant utilized job workers for certain processes, and the Revenue sought to deny CENVAT Credit on Excise Duty paid by the job workers. The appellant argued that since they are paying service tax and using the goods in providing services, they are entitled to take credit of the Excise Duty and Service Tax paid. The Tribunal noted that the denial of CENVAT Credit was unjustified as the goods were indeed used in providing services for which the appellant was discharging Service Tax liability. The Tribunal allowed the appeal against the denial of CENVAT Credit (E/70/2011).

2. A separate issue arose concerning a Show Cause Letter demanding duty against the utilization of the denied CENVAT Credit, leading to a situation of double jeopardy for the appellant. The Tribunal found this demand unsustainable and set it aside, emphasizing that regardless of the final decision on CENVAT Credit availability, demanding duty on the same credit amount would amount to double jeopardy. Consequently, the appeal against the demand of duty against the utilization of CENVAT Credit (ST/526/2011) was allowed. The Tribunal's decision highlighted the principle of avoiding double jeopardy in tax matters and upheld the appellant's position regarding the utilization of CENVAT Credit.

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