TaxTMI 
TaxTMI 
2018 (12) TMI 853
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....n black. The head office of the appellant holds a centralized service tax registration for discharging the service tax liability in respect of services taxable on a reverse charge basis. Besides, the head office is also registered as an input service distributor (ISD) for distributing the credit of service tax paid on reverse charge basis as also the service received from various service providers in accordance with Rule 7A of the Cenvat Credit Rules, to its plants. During the month of July, 2007 to March, 2008 (the relevant period), the head office interalia issued the below mentioned 7 No ISD invoices to its Durgapur plant distributing the credit of Rs. 1,16,63,635/- (including Education Cess and the S&H Education Cess) pertaining to GTA ....
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.... the plant was duly disclosed in the returns filed for August, 2008. Show cause notice dated 30.07.2008 was issued covering all the 7 invoices proposing denial of cenvat credit to the appellant on the ground that the said ISD invoices were incomplete in as much as a) The invoices neither contain the name and address of the person providing the service nor the serial no and date of invoice issued by the service provider as required under Rule 4A(1) and Rule 4A(2) of the Service Tax Rules. b) The ISD invoices have been issued in clear violation of the provisions of Rule 9(1)(g) and Rule 9(2) of the Cenvat Credit Rules, 2004. The show cause notice has been confirmed by the ld. Commissioner on the following grounds; i) GTA is undoub....
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.... c) He further submits that service tax in the instant case was paid by the Head office on the GTA services under the reverse charge provisions. The notice and the Order-in-Original passed thereunder also does not dispute the eligibility of credit on GTA services as both inward transportation to the factory premises and outward transportation from the factory premises were covered by the definition of input service. d) He also submits that verification of ISD invoices vis-à-vis tax paid so as to ensure compliance with Rule 7 of the CCR had to be carried out at the end of ISD holding registration with Kolkata I Commissionerate and filing statutory returns in terms of the CCR. e) He finally submitted that on the self-same issue....
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.... also submits that on the issue of interest, there are other decisions by the Hon'ble High Court of Madras and also decision of the Hon'ble Tribunal. He also counters the Citations made by the Learned Counsel. He submits the Apex Court's decision in Ind-Swift Laboratories Ltd (supra) is in the favour of Revenue stand. He also cited the decision of Hon'ble Madras High Court in the case of CCE, Chennai v. Delphi TVS Diesel Systems Ltd - 2015 (322) E.L.T. 279 (Mad.) and decision of this Hon'ble Tribunal in Force Motors Ltd v. CCE., Pune - 2015-TIOL-1833- CESTAT-Mum = 2015 (329) E.L.T. 543 (Tribunal). The learned Authorised Representative strongly argued that if the audit had not pointed out the wrong availment of cenvat credit, it would have r....
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....NVAT credit has been wrongly taken or wrongly utilized, interest, is recoverable under Rule 14 of the Rules. However, in the light of the aforesaid decision of the Supreme Court, when the entry has been reversed before utilization, the same amounts to not taking credit. In the circumstances, where CENVAT credit is taken wrongly, but reversed before the same is utilized, it amounts to not taking credit. Accordingly, when no credit is taken, the provisions of Rule 14 of the Rules would not be attracted. The view adopted by the Tribunal as well as the authorities below is, therefore, in consonance with the view taken by the Supreme Court in the above referred decision." 6. We find that in this case the appellant had reversed the credit as s....