Case Law Details
Diamond Cement Vs Commissioner, Central Goods & Service Tax (CESTAT Delhi)
CESTAT Delhi held that the appellant can duly avail the credit of service tax paid on rail freight on the strength of the certified copy of railway receipts read with Monthly Consolidated Certificates and STTG certificate issued by the Western Central railway.
Facts- The appellant was engaged in the manufacture of cement, and availed the services of West Central Railway division of Indian Railways, for transportation of their finished goods from the plant to their depots/Godowns/ Warehouses.
The WCR charged and collected service tax on the rail freight amount from the appellant. At the time of consigning the goods, WCR issued one copy of the railway receipt/consignment note to the appellant which contained details like name of the consignor and consignee name, value of service, service tax particulars, like amount of service tax, registration number of service provider, description of service, Wagon number and commodity code. These original RRs had to be returned to the railways on receipt of the goods at their depot/warehouse/ godown. At the time of return of the original RR, WCR provided certified copy of the R.Rs to the appellant to enable them to take CENVAT credit of the service tax paid by them. This document evidenced the factum of payment of service tax.
Thereafter, the department issued a notice to the appellant for denial of Cenvat credit amounting to Rs. 1,18,16,326/- availed on certified copy of RRs for non-fulfillment of condition of Rule 9 of the CENVAT Credit Rules, 2004. The adjudicating authority in his order dated 19.12.2013 denied the request for availment of disputed credit on the basis of certified copy of RRs. On appeal, the Commissioner(Appeals) dismissed the appeal of the appellant.
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