2022 (3) TMI 319

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.... appellant are registered as input service distributor and have distributed cenvat credit to its manufacturing plants located at three different places by way of issuing ISD invoices. The appellant unit was audited by Central Excise Revenue Audit and auditors pointed out that the Nandesari Manufacturing Unit of the appellant had availed ineligible cenvat credit of service tax paid under Voluntary Compliance Encouragement Scheme 2013 (VCES). VCES was implemented to encourage people to disclose their service tax liability on which they had failed to pay service tax and benefit in the shape of waiver of interest and penalty, and immunity from prosecution was offered in return to the assessees declaring under VCES. The CERA Auditor observed tha....

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....decisions: • 2019 (2) TMI 1299 -Nissan Motors India Pvt. Ltd. • 2018 (12) TMI 1098 -Columbia Machine Engineering India P.Ltd. • 2018 (2) TMI 804 -Polygenta Technologies Ltd. He further argued that the show cause notice dated 23.06.2020 is barred by limitation as the credit was availed in the ST-3 return filed for the period October 2014 to March 2015. He pointed out that the fact of payment under VCES and availment of cenvat credit was reflected in the ST-3 Return filed on 24.04.2015. He further argued that this fact was also noticed by CERA. It was further argued that the issue is purely interpretational in nature regarding applicability of Rule 9(1)(bb) of Cenvat Credit Rules 2004 and therefore, n....

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....he Cenvat Credit Rules. Rule 9 reads as under: Rule 9. Documents and accounts:- (1) The CENVAT credit shall be taken by the manufacturer or the provider of output service or input service distributor, as the case may be, on the basis of any of the following documents, namely :- (a) ................. (b) ................. (bb) a supplementary invoice, bill or challan issued by a provider of output service, in terms of the provisions of Service Tax Rules, 1994 except where the additional amount of tax became recoverable from the provider of service on account of non-levy or non-payment or short-levy or short-payment by reason of fraud or collusion or wilful mis-statement or suppression of facts or contraven....