Case Law Details
Reliance HR Services Private Limite Vs Assistant Commissioner of Service Tax (CESTAT Delhi)
CESTAT Delhi held that denial of CENVAT Credit due to procedural irregularities/ lapses is unsustainable in law. Substantive benefit cannot be denied due to procedural irregularities/ lapses.
Facts- The appellants are registered with service tax department and are engaged in the provision of ‘manpower recruitment agency‘ and ‘commercial training or coaching‘ services. During the course of audit conducted, it was noticed that the appellants have wrongly availed Cenvat credit on input services and invoices issued in the name of locations which are not included in the Centralized registration. A show cause notice dated 28.04.2012 was issued to the appellants and was confirmed by the Additional Commissioner vide order dated 30.03.2016. On an appeal filed by the appellants, the Commissioner (Appeals) vide impugned order upheld the order of the original authority. Hence this appeal.
Conclusion- Held that it is a well settled law that on account of procedural irregularities/lapses substantive benefit cannot be denied; the appellant availed Cenvat credit of service tax paid on the inputs/input services prior to registration at some locations with the service tax department; eligibility of credit usage of such services for providing taxable output services are not under dispute; and therefore, non-registration of the branches is only a procedural lapse.
FULL TEXT OF THE CESTAT DELHI ORDER
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