Assessee Not Eligible To Avail CENVAT Credit On Invoices Not In Their Name: CESTAT

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that the assessee is not eligible to avail the CENVAT Credit on the basis of the invoices which were not in their name. The Bench of Binu Tamta (Judicial Member) and Hemambika R. Priya (Technical Member) has observed that “it is necessary that the document contains all particulars as mentioned therein to avail the credit. The name of the consignee or service receiver on the invoice is the basic requirement for availing the CENVAT Credit.” In this case, the assessee/appellant is engaged in the manufacture of Condenser Coils, Evaporative Coils and Air Conditioners. The assessee was manufacturing at their Bhiwadi Unit whereas CENVAT Credit was availed in respect of service tax paid for advertising of the air conditioners meant for domestic purpose, which were manufactured at another unit of the assessee. It was observed that the assessee/appellant had wrongly availed CENVAT Credit of service tax paid on ineligible input services during the period, April 2015 to March 2016. A Show cause notice was issued to the assessee. The demand along with penalty and interest was confirmed. The appeal filed by the assessee was also dismissed. The issue before the Tribunal was whether CENVAT Credit on advertisement services, tour operator services used for consignment agents and installation/dismantling of machinery at Haridwar Unit of the assessee is admissible. The assessee submitted that the service tax paid on the advertisement service is in relation to sales promotion of the goods manufactured by the appellant in terms of the inclusive part of the definition of ―input service‖ under Rule 2(l) and hence, they are eligible to claim CENVAT Credit. The bench noted that there is no co-relation of the input services received and consumed in the unit at Bhiwadi. The assessee failed to discharge the burden that the input service taken and utilised was related to manufacture, clearance and sale of the final products manufactured by them. The Tribunal further added that it is undisputed that the invoices were not in the name of the assessee and therefore, cannot be said to be valid documents as per Rule 9(2). The assessee was, therefore, not eligible to avail the CENVAT Credit on the basis of the invoices which were not in their name. In view of the above, the Tribunal dismissed the appeal. Case Title: M/s Leel Electricals Ltd. v. Commissioner of CGST & Central Excise Case Number: EXCISE APPEAL NO. 50277 of 2019 Counsel for Respondent/ Department: Ranjan Prakash Click Here To Read/Download The Order

Assessee Not Eligible To Avail CENVAT Credit On Invoices Not In Their Name: CESTAT

Mehak Dhiman

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INR 1099+GST

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Assessee Not Eligible To Avail CENVAT Credit On Invoices Not In Their Name: CESTAT

Mehak Dhiman

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INR 1099+GST

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