TaxTMI 
TaxTMI 
2025 (6) TMI 843
X X X X Extracts X X X X
X X X X Extracts X X X X
.... 2. In the OIO, CENVAT credit was denied on various inputs and input services and in the impugned order, the Commissioner (Appeals) restricted the denial of CENVAT credit to "service tax paid on services of transportation of employees of the appellant to the factory" and "service tax paid on the services of canteen for the appellant's employees". 3. I have heard learned counsel for the appellant and learned authorised representative for the Revenue and perused the records. 4. CENVAT credit on transportation of employees was denied to the appellant on the ground that with effect from 1.4.2011, service tax paid on "rent a cab" services were excluded from the definition of "input service" under Rule 2(l) of the CENVAT Credit Rules, 2004 CCR. It is further stated that the Karnataka High Court had accordingly, disallowed CENVAT credit of service tax paid on transportation provided to the employees in CCE versus Stanzen Toyotetsu 2011 (23) STR 444 (Kar.) and also in Mangalore Refinery & Petrochemicals Ltd. 2016 (42) STR 6 (Kar.). 5. CENVAT credit on service tax paid by the contractor for Canteen facility to the workers of the factory was denied on the ground that the defin....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... on the nature and CENVAT credit availed." He further said that this is why the self assessment regime being an audit based control, more emphasis is based on audit, i.e., verification of the assessee"s records including ER -1 Returns. He further said that if the audit raises an objection, it would be certainly against the details not declared in ER-1 Returns. He held that since in this case, the ineligible CENVAT credit has been noticed only during the audit and that these details were not forthcoming in the ER1 returns at all and they came to light only during audit. Therefore, he concluded that "the said omission on the part of the assessee vis-a-vis the clear and unambiguous statutory provisions, certainly amounts to mis-statement as also suppression of the material facts, with intent to evade payment of CE duty by wrongly utlising the credit" and therefore, invoked extended period of limitation. 12. In the impugned order, the Commissioner (Appeals) invoked extended period of limitation on the ground that the appellant had never informed the department about the nature of the input services they are utilizing and inputs and capital goods they are consuming for manufacturing ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....larification from the department and it had not done so and therefore, held that it was a clear cut case of deliberate attempt to avail CENVAT credit of duty/tax pertaining to inputs and input services that were not eligible. 16. I find that both the Deputy Commissioner and the Commissioner (Appeals) have conveniently forgotten that the assessee can only self-assess and file returns and that great responsibility is cast on the officers to scrutinize the returns and to raise a demand, if necessary. Adequate time is given to the officers under the Rules to complete this exercise. If the officer fails to do so and as a result, a demand of duty or denial of CENVAT credit which is sustainable on merits gets time barred, the responsibility for it lies squarely on the officer. 17. It would also be useful to examine the procedure laid down under the Act and Rules. Duties of excise are levied on "excisable goods" manufactured or produced in India (section 3) but the duty becomes payable on removal of the goods (Rule 4) and it must be paid by the fifth of the following month (Rule 8). The assessee is expected to self-assess the duty (Rule 6), pay it and file Returns (Rule 12). The offi....
X X X X Extracts X X X X
X X X X Extracts X X X X
....upees one crore but less than Rs. 5 crores from PLA per annum every six months. They shall requisition all connected documents including invoices and the records and scrutinize the correctness of assessment. 2.4 The Additional/Joint Commissioner of Central Excise will scrutinize the returns of the units which pay duty of Rs. 5 crores or more from PLA per annum every six months. They shall requisition all connected documents including invoices and the records and scrutinize the correctness of assessment. (emphasis supplied) 20. It is thus evident that not only do the Rules mandate officers to scrutinise the Returns to verify the correctness of self-assessment and empower the officers to call for documents and records for the purpose, but the instructions issued by the department specifically require officers at various levels to do so. 21. If scrutiny by officers reveals short payment or non-payment of duty, a demand can be raised under section 11A. Quite logically, as per section 11A, the relevant date prescribed for reckoning the time limit under section 11A is "the date of filing of the return" and if no return is filed, "the last date on which the return should ha....