Computer Point Ltd. Vs Commissioner of CGST & Central Excise (CESTAT Kolkata)
The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Kolkata, allowed the appeal by setting aside the disallowance of CENVAT credit, along with interest and penalty, while upholding only the late fee liability. The dispute arose from allegations that the appellant had availed irregular CENVAT credit amounting to ₹2,18,59,482/- based on invoices issued by two service providers who were later found to be non-existent at their registered addresses and had not filed returns or paid service tax.
The department alleged that these entities had issued invoices without rendering actual services and treated the credit as ineligible. A show cause notice was issued proposing recovery of credit along with interest, penalties, and late fee, which was confirmed by the adjudicating authority.
The appellant contended that it had received input services during the relevant period, supported by invoices issued by registered service providers whose registrations were active at that time. Payments, including service tax, were made through banking channels. It was argued that subsequent non-availability of the service providers at their registered addresses could not establish non-receipt of services. The appellant further submitted that it was not responsible for ensuring that the service providers deposited service tax with the authorities.
