2010 (1) TMI 404

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...., for the Respondent. [Order]. - Cenvat Credit of service tax paid on various services amounting to Rs. 2,71,935/- has been denied on the ground that when the ER-1 return filed by the appellant in the month of September 2006, the opening balance was shown as Rs. 2,71,935/- whereas there was no closing balance for the month of August 2006 equal to this amount as credit of service tax taken. The ....

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....at credit account regularly but failed to reflect the credit of service tax taken in the ER-1 returns. As soon as they found the mistake, they started showing it in the return in the month of September 2006 and hence the imbalance between opening balance and closing between the two months. He also submits that after the reply to show cause notice was furnished, the department had undertaken verifi....

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....view of the consistent decisions of the Tribunal that credit can be taken at any time and it is not necessary that credit should be taken immediately. In support of his contention he cited the decision of the Tribunal in the case of M/s. Pierlite India Pvt. Ltd. vide Order No. A/2124/WZB/AHD/2009 dated 23-9-09 [2010 (250) E.L.T. 49 (Tribunal)] and Coromandal Fertilizers Ltd. v. CCE, Ahmedabad repo....

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.... by both the sides. I agree with the learned advocate that failure to reflect the Cenvat credit balance in the ER-1 return is only a procedural omission and in the normal course credit could not have been denied and should not have been denied on this ground. I also find that it is not the case of Revenue that appellant is not eligible for the Cenvat credit. Further, even assuming that appellant i....