Commissioner of CGST & CX Vs Berger Paints India Ltd. (CESTAT Kolkata)
CESTAT Kolkata Dismisses Revenue Appeal and Allows CENVAT Credit Despite Procedural Defects in ISD Challans Where Parent Invoices Were Genuine
The Revenue appealed against the Commissioner (Appeals)’ order setting aside a demand of CENVAT credit of Rs.1,25,83,047, along with interest and penalty, arising from a Show Cause Notice dated 24.04.2017 relating to credit availed during 2012-13.
The Revenue contended that the Commissioner (Appeals) had wrongly set aside the adjudication order and relied on the findings of the Adjudicating Authority. The respondent submitted that it had produced ISD challans/invoices along with detailed Excel workings showing the distribution of service tax credit. It also contended that the Show Cause Notice was time-barred since the CENVAT credit had been properly disclosed in monthly ER-1 returns, and therefore suppression with intent to evade duty could not be sustained.
The Tribunal noted that the dispute related to service tax CENVAT credit availed on the basis of ISD challans/invoices issued by the respondent’s Head Office. The Commissioner (Appeals) had found that although the department objected to credit being distributed through letters rather than documents specifically titled as invoices or challans, the Head Office had enclosed the original input service provider invoices with the challans. These documents contained complete details of the service providers, services received and service tax paid, enabling departmental verification.
