2018 (7) TMI 2382 - SCH - Service Tax

Cenvat credit dispute over reclassifying supplier's consultancy service to business auxiliary service; credit allowed, appeal admitted.

The dominant issue concerned whether the recipient of taxable services could be denied Cenvat credit by reclassifying the supplier's service from ... Change of classification of the service from “Management Consultancy Service” to “Business Auxiliary Service” - eligibility to claim credit of service tax paid by IHCL - it was held by CESTAT that 'the services provided by IHCL is correctly and appropriately classifiable under Management & Business Consultant's Services and not under Business Auxiliary Service and the jurisdictional officers at recipient's unit are not empowered to review or revise the classification at supplier/ provider's end.' - it was further held that 'the jurisdictional authorities at Piem Hotels have committed an apparent error in denying the credit and it is well settled position of law that jurisdictional officers at recipient's end are not empowered to question or change the classification or valuation at supplier's end based on various judgments of Hon'ble Apex Court. So, Cenvat credit cannot be denied.' - HELD THAT:- Appeal admitted. The Supreme Court passed a brief procedural order after hearing learned counsel for the appellant(s) and 'perused the relevant material.' The Court first recorded that 'Delay condoned,' thereby allowing the appeal to proceed despite being filed beyond the prescribed limitation period. It then directed 'Admit,' indicating that the matter was found fit for consideration on merits and formally admitted for hearing. For case management and consistency in adjudication, the Court further ordered: 'Tag with Civil Appeal No. 1557/2016,' directing that this matter be heard along with the referenced civil appeal, typically because of overlapping questions of law or facts. No substantive legal issue, reasoning on merits, or final determination of rights was rendered in this order; the directions are confined to limitation, admission, and tagging for joint listing.