Mahindra Holiday And Resorts India Ltd. Vs Commissioner of GST & Central Excise (CESTAT Chennai)
The appeal arose from an Order-in-Original dated 09.10.2015 passed by the Commissioner, LTU, Chennai, concerning denial of CENVAT credit availed by Mahindra Holiday and Resorts India Ltd. The appellant, registered under centralized service tax registration, provided “Club or Association” services along with other taxable services such as tour operations, event management, health club and fitness centre services, internet café services, and renting of immovable property.
During scrutiny of records for the period April 2012 to March 2013, the department objected to certain CENVAT credit claims on two principal grounds: defects in invoices and alleged absence of nexus between certain input services and output services. The Commissioner disallowed CENVAT credit amounting to Rs. 2,69,76,573, ordered recovery with interest, and imposed a penalty of Rs. 14,00,000. A further demand of Rs. 18,13,455 was confirmed relating to invoices lacking mandatory particulars.
The appellant challenged the order, contending that the show cause notice (SCN) had been issued mechanically on the basis of an Excel sheet without proper invoice verification. It argued that procedural defects in invoices should not result in denial of credit and that all disputed services had a nexus with its output services. The appellant also alleged violation of natural justice because the verification report relied upon during adjudication had not been furnished to it. Additionally, it submitted that certain demands confirmed in the order related to services not proposed in the SCN.
