2025 (11) TMI 1098

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....ervice' 'Manpower Recruitment/Supply Agency Service', etc., as per the Finance Act, 1994 [Act, 1994]. 2. The dispute in the present appeal relates to disallowance of cenvat credit and demand of service tax of Rs.1,71,61,578/- along with interest and penalties for the period October, 2016 - June, 2017. The demand relates to the disallowance of the entire cenvat credit involving Rs.1.26 crores. The demand proposed in the show cause notice dated 22.04.2023 was confirmed by the Order-in-original dated 19.12.2023. The appeal filed by the appellant has basically confirmed the demand barring an amount of Rs.70,760/-, which was dropped by the impugned order [Order-in-Appeal No.103/ST/DLH/2024 dated 3.6.2024]. Hence, the present appeal has been f....

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....wo volumes of the documents and the Chartered Accountant's Certificate as regard to the balance in the Cenvat Credit Register as on 30.06.2017, which was duly carried forward through TRAN-I to the GST Regime in the Electronic Credit Register. In so far as the credit of Rs.67,83,083/- could not have been disallowed, ex facia, this amount represented the tax paid under Reverse Charge by challans and the Returns of which were disclosed in the ST-3 Returns and the Chartered Accountant's Certificate. In that view, the learned counsel has prayed that the matter needs to be remanded back to the Adjudicating Authority. 5. On the issue of income of Rs.78,56,612/-, by way of interest on fixed deposits with banks and inter-corporate deposits, the s....

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.... charge mechanism. Learned counsel has, therefore, prayed that the matter requires to be remanded back to the Original Authority for de novo re-consideration. 8. Learned Authorised Representative has reiterated the findings of the Authorities below. Referring to the provisions of Rule 9(5) of the Cenvat Credit Rules, 2004 [CCR, 2004], learned Authorised Representative submitted that the burden of proof regarding the admissibility of cenvat credit lies upon the manufacturer or provider of goods/service taking such credit. By not producing the corresponding invoices or payment details, the appellant failed to prove that the service tax was paid or that the expenses were not taxable. Learned Authorised Representative has also justified the ....

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....nly based on the ledger account and not on the bank statement. We find that the Adjudicating Authority has erred in ignoring the fact that the Chartered Accountant's Certificate is based on the audited accounts duly certified by the Auditors and filed with the Registrar of Companies. As is evident from the provisions of Section 66D(n)(i), the income by way of interest is specifically included therein and, therefore, demand made is contrary to the provisions of the Act and hence, unsustainable. 11. The balances written back represents bad debts written off in previous year but recovered subsequently. This is purely a financial transaction of dealing with debtors and bad debts are written off in the Profit & Loss Account as loss but when r....

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....elow have ignored Chartered Accountant's Certificate, which duly certifies the amount reflected in the audited accounts. The Adjudicating Authority is required to verify the details, as provided in the copies of invoices certified by the Chartered Accountant's Certificate. In that view, the matter needs to be remanded to the Adjudicating Authority. 14. As noticed above, since the Adjudicating Authority has failed to consider the documents and passed the order in haste on the very same day when the documents were produced, it is evident of the fact that the same have not been considered. Also from the perusal of the impugned orders, the Authorities have repeatedly observed that the appellant has not provided the cenvat availment related i....