Sponsored
    Follow Us:

Case Law Details

Case Name : Nayara Energy Limited Vs C.C.E. & S.T.-Rajkot (CESTAT Ahmedabad)
Appeal Number : Excise Appeal No. 11844 of 2016
Date of Judgement/Order : 17/03/2021
Related Assessment Year :
Become a Premium member to Download. If you are already a Premium member, Login here to access.
Sponsored

Nayara Energy Limited Vs C.C.E. & S.T. Rajkot (CESTAT Ahmedabad)

We find that the adjudication authority in respect of most of the services denied the credit on the ground that no evidence was produced by the appellant to prove that the services was availed by the appellant and also on the ground that there is no nexus between the services with the manufacture and clearance of the goods or for their business activity. We find that all the services per se are prima facie input services held in various judgments, however, the admissibility of Cenvat credit on these services can be decided on the basis that whether the services were used for the purpose specified in the definition of input service. The appellant along with this appeal submitted various documents such invoices, CA certificates etc, but since the said documents were not considered by the lower authority, the denial of credit is not correct as the same is on presumption basis. Therefore, we are of the view that the entire matter needs to be re-considered in the light of the various documents submitted by the appellant. We therefore set aside the impugned order and allow the appeal by way of remand to the adjudicating authority to pass a de novo order after considering all the documents to be submitted by the appellant before him. Needless to say that the appellant should be given sufficient opportunity to make their submission and documents, if any required, and also granting the personal hearing before de novo adjudication.

FULL TEXT OF THE CESTAT JUDGEMENT

The issue involved is that whether the appellant entitled for Cenvat Credit on the following various input services.

Sr.No. PARTICULARS
1 Air Travel Agent
2 Club or Association
3 Event Management
4 Fashion Designing
5 Franchise Service
6 Interior Decorator
7 Outdoor Catering
8 Rail Travel Agent
9 Renting on immovable property
10 Rent-a-cab Operator
11 Tour Operator
12 Travel Agent Services

2. Shri Karan Sarwagi, Learned Chartered Accountant appearing on behalf of the appellant submits that the adjudicating authority denied the Cenvat credit on the aforesaid services on the ground that there is no nexus of the services in or in relation to manufacture and clearance of the goods. The Adjudicating Authority also denied the credit on the ground that the appellant has not adduced any evidence as regard use of the services. He submits that all the services were used in or in relation to either manufacture or clearance of the goods or in relation to the overall business of the appellant company. He referred to various document such as invoices and CA certificate etc. to establish the use of the services by the appellant. On the query from the bench whether the said documents were placed before the Adjudicating Authority, he fairly concede that though they have submitted before the Adjudicating Authority but stated during hearing that if required the documents will be submitted to the Adjudicating Authority. However, without asking for the document, the Adjudicating Authority passed the order. In support of the submission, he placed reliance on the following decision.

  • M/s ESSAR OIL LTD Vs. COMMISSIONER OF CENTRAL EXCISE, CUSTOMS AND SERVICE TAX, RAJKOT -2016-TIOL-648- CESTAT- AHM
  • PRINCIPAL COMMISSIONER Vs. ESSAR OIL LTD – 2016 (41) S.T.R 389 (Guj.)
  • COCA COLA INDIA PVT. LTD VS. COMMISIONER OF C.EX., PUNE-III – 2009(242) E.L.T 168 (Bom.)

3. Shri Dharmendra Kanjani, Learned Superintendent (Authorized Representative) appearing on behalf of the revenue reiterates the finding of the impugned order.

4. We have heard both sides and perused the records. We find that the adjudication authority in respect of most of the services denied the credit on the ground that no evidence was produced by the appellant to prove that the services was availed by the appellant and also on the ground that there is no nexus between the services with the manufacture and clearance of the goods or for their business activity. We find that all the services per se are prima facie input services held in various judgments, however, the admissibility of Cenvat credit on these services can be decided on the basis that whether the services were used for the purpose specified in the definition of input service. The appellant along with this appeal submitted various documents such invoices, CA certificates etc, but since the said documents were not considered by the lower authority, the denial of credit is not correct as the same is on presumption basis. Therefore, we are of the view that the entire matter needs to be re-considered in the light of the various documents submitted by the appellant. We therefore set aside the impugned order and allow the appeal by way of remand to the adjudicating authority to pass a de novo order after considering all the documents to be submitted by the appellant before him. Needless to say that the appellant should be given sufficient opportunity to make their submission and documents, if any required, and also granting the personal hearing before de novo adjudication.

5. The appeal is allowed by way of remand to the adjudicating authority.

(Pronounced in the open court on 17.03.2021)

Sponsored

Join Taxguru’s Network for Latest updates on Income Tax, GST, Company Law, Corporate Laws and other related subjects.

Leave a Comment

Your email address will not be published. Required fields are marked *

Sponsored
Sponsored
Ads Free tax News and Updates
Sponsored
Search Post by Date
December 2024
M T W T F S S
 1
2345678
9101112131415
16171819202122
23242526272829
3031