2023 (1) TMI 1184

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....was engaged in providing non-taxable output services also i.e. trading of goods as well as exempted output services. Appellant had not maintained separate records for providing taxable and non-taxable as well as exempted output service as contemplated in Rule 6(2) of Cenvat Credit Rules, 2004. It was noticed that appellant have taken Cenvat credit of Rs. 7,10,60,401/- in the year 2014-15 for the input services said to have been received/ pertaining to the year 2007-08 to 2014-15. Appellant were asked to furnish the proof of having not availed Cenvat credit for the period from the financial year 2007-08 to 2013-14 in respective financial year, which they have availed in the financial year 2014-15. However Appellant failed to produce any of t....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... is used for exempted service. However, for exercising this option the Appellant had to follow the procedure as mentioned in Rule 6(3A) of the Cenvat Credit Rules, 2004. In the present case, undisputedly, the Appellants have followed the procedure as mentioned in Rule 6(3)(b)(ii) of Cenvat Credit Rules, 2004 but the Appellant have not given the intimation at the time of exercising the option as mentioned in Rule 6(3A) of Cenvat Credit Rules, 2004. However, at the time of availing the proportionate Cenvat credit of common input services, the Appellants vide their letter dated 26.09.2014 duly informed the Superintendent of Central Excise. Therefore, substantially, the Appellants have followed the procedures as mentioned in Rule 6(3A) of the C....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....voices raised by the service provider. There is no violation of Rule 9 of Cenvat Credit Rules, 2004. The Appellant have duly maintained all the original copies of the invoices at their respective locations. As and when it was asked, the appellant provided the photocopies of invoices of different locations. The photocopies of the invoices submitted by the Appellants were verified during the course of audit. The audit team of the service tax department has not objected on the ground that the appellant has availed cenvat credit of input services without any invoices. 2.4 He further submits that the para 5 of show cause notice alleged that there is discrepancy in the records maintained by the Appellants. Such observation emanated from the obse....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ndomly selected photocopies of input services invoices on which they have availed Cenvat credit. Therefore appellant has violated provisions of Rule 5A (2) of the Service tax Rules, 1994. Further they had availed Cenvat credit amounting to Rs. 7,10,60,401/- by making some consolidated entries in their Cenvat credit register during the period June 2014 to March 2015, which involves hundreds of input service invoices of 2007-2008 to 2013-14. The Cenvat credit has been availed without any proof of having valid documents as prescribed under Rule 9 of the Cenvat Credit Rules, 2004. They have not fulfilled the conditions of Rule 6(3A) of Cenvat Credit Rules 2004. The Ld. Commissioner in the impugned order also upheld the said allegations. On the ....