2019 (11) TMI 828

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....pearing for the appellant and Shri Pawan Kumar Singh learned A.R. appearing for the Revenue, we find that the appellant is engaged in manufacture of excisable goods viz. Pneumatic Valves, Actuators and systems falling under Chapter 84 & 85 of the Schedule to the Central Excise Tariff Act, 1985. It is seen that during the period April, 2008 December, 2012 they received various services from foreign associated company, which were taxable under the Management Consultancy Services. Inasmuch as the foreign based company was not having any office in India the tax liability fell upon the appellant, who were liable to pay the same on reverse charge basis. However, the tax liability was not discharged by the appellant during the relevant time. 2.....

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....e Tribunal. On the other hand, the contention of the learned A.R. appearing for the Revenue is that inasmuch as the said payment was made under VCES Scheme they were in any case, not entitled to the credit of the same. 5. In his rejoinder learned Chartered Accountant has drawn our attention to the Circular No.170/5/2013-ST [F.No.B1/19/2013-TRU(PT)] dated 08/08/2013 issued by the Central Board of Excise & Customs clarifying that the tax amounts deposited in terms of VCES Schemes are available as Cenvat credit to the assessee. For the above proposition, he has drawn our attention to Serial No.18 of the said Circular. 6. For better appreciation of the relevant part of the said Circular, we reproduce the same as under:- Circular No.170....

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....cturer or an importer as eligible invoice for the purpose of availment of credit except where the additional amount of duty became recoverable from the manufacturer or importer on account of any non-levy or short-levy by reason of fraud, collusion or any willful misstatement or suppression of facts or contravention of any provisions or Rules with intent to evade payment of duty. Admittedly in the present case appellant is importer of services and was under legal obligation to pay service tax on reverse charge basis. The said service tax was not paid by the appellant in the ordinary course of the business by raising invoice thereto. The fact is that the said payment was made in terms of VCES Scheme which is special piece of legislation al....