https://www.taxtmi.com/css/info/rss_sitemap/rss_feed.css?v=1746094055 https://www.taxtmi.com Business/Tax/Law/GST/India/Taxation/Policies/Legal/Corporate Tax/Personal Tax/Vat Law/Legal Information/Tax Information/Legal Services/Tax Services Tax Management India. Com / MS Knowledge Processing Pvt. Ltd. All rights reserved. One stop solution for Direct Taxes and Indirect Taxes https://www.taxtmi.com/caselaws?id=765768 https://www.taxtmi.com/caselaws?id=765768 CENVAT Credit - input services under Rule 2(l) of the Cenvat Credit Rules, 2004 - call centre services - extended period of limitation - levy of interest and penalty as well - HELD THAT:- There is no provision in the format of the ER-1 Returns to mention the amount of Cenvat credit availed under each service category or transaction-wise. Only the total availment of Cenvat credit is required to be reflected in the return. Therefore, the finding that the Appellant did not inform the Department of such availment of Cenvat credit on the said services is unsustainable. The issue of Cenvat Credit on invoices of Authorized Service Station for the services provided during the warranty period has already been dealt by the Tribunal in the Appellant s case M/S L.G. ELECTRONICS (INDIA) PVT. LTD. VERSUS COMMISSIONER OF CENTRAL EXCISE CGST, GHAZIABAD [ 2024 (8) TMI 787 - CESTAT ALLAHABAD] where it was held that CESTAT has constantly been taking view in respect of admissibility of CENVAT credit in on warranty services provided through third party authorized service centres. Extended period of limitation - HELD THAT:- The present case involves interpretational issues involving complex legal provisions to determine the correct admissibility of Cenvat credit. It is a settled position that a case involving interpretation of the statutory provisions cannot be construed to be a case of wilful misstatement or suppression of facts, with intent to evade payment of tax or avail Cenvat credit in a fraudulent manner. Levy of penalty - HELD THAT:- As per Section 11AC of the Act read with Rule 15 of Cenvat Credit Rules, 2004 the penalty can be imposed only in cases of fraud, collusion, wilful misstatement or suppression of facts or contravention of provisions of Excise Act with an intention to evade payment of duty. The Appellant has already stated that they have not contravened any provisions of law as they did not avail any credit in contravention of any provisions of law. Levy of interest - HELD THAT:- According to Rule 14 read with Section 11AA, interest is chargeable only when any duty of excise has not been levied or paid or has been short levied or short paid or erroneously refunded or Cenvat credit has been erroneously taken and utilized. The situations contemplated under Rule 14 as well as under Section 11AA are absent in this case. Therefore, where the demand of Cenvat credit is itself liable to be set aside, as a necessary consequence, interest is also not payable. Therefore, the impugned order confirming recovery thereof, is liable to be set aside. Conclusion - i) The services related to sales promotion and brand building have a direct nexus with manufacturing and are eligible for Cenvat credit. The demand, interest, and penalties imposed on the Appellant set aside. ii) The order of Learned Member (Judicial) is agreed by order of Learned Member (Technical). Appeal allowed. Case-Laws Central Excise Fri, 31 Jan 2025 00:00:00 +0530