2018 (10) TMI 533 – CESTAT HYDERABAD – TMI – CENVAT credit – ineligible documents – rule 9(1) of CCR – debonding of EOU – service tax on the commission paid to their overseas agencies, covering the period from April 2006 to December 2012 – VCES Scheme – Held that:- The appellants have paid the service tax and have also filed declaration under VCES. Final discharge certificate was issued only on 03.09.2014 and there was no occasion to avail the CENVAT credit prior to receiving of the discharge certificate. They have availed the CENVAT credit only on 30.09.2014.
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There were correspondence exchanging views between the appellants and their Range authority and they had taken the credit on a later occasion as advised by the Range authorities and in such a factual scenario, there is no occasion to deny the benefit of the credit to which the appellants are lawfully entitled to.
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Appeal allowed – decided in favor of appellant. – E/30795/2018 – A/31262/2018 – Dated:- 5-10-2018 – Mr. P
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imposed penalty of equal amount under Rule 15(2) of CCR, 2004 read with Section 11AC (1)( C) of Central Excise Act, 1944. On appeal, the Ld. Commissioner (Appeals) upheld the adjudication order and rejected the appeal filed by the assessee. Hence the present appeal before the Tribunal. 2. Ld. Advocate appearing on behalf of appellants filed a list of dates and also copies of decisions relied upon. He submits that on being advised that the appellant is liable to pay service tax on the commission paid to their overseas agencies, covering the period from April 2006 to December 2012, involving an amount of ₹ 3,78,284/- and on being further advised to avail the VCES Scheme announced by the Government, they filed their declaration under VCES Scheme and also paid 50% of the service tax liability amounting to ₹ 1,89,142/- vide TR-6 challan No. 00381, dt. 29.12.2013 and paid the balance amount of 50% vide TR-6 Challan No. 0085, dated 27.06.2014. Ld. Advocate further submits that aft
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ve paid the service tax and have also filed declaration under VCES. Final discharge certificate was issued only on 03.09.2014 and there was no occasion to avail the CENVAT credit prior to receiving of the discharge certificate. They have availed the CENVAT credit only on 30.09.2014. I observe that the lower authorities have failed to appreciate that input service tax payable under reverse charge was the issue to be considered and settled under VCES and it was reasonable for the appellants to await the acceptance of their application under VCES since the payment of input service tax has to trigger both, the VCES declaration and their right to avail credit and the sine quo non for both the occasions are the TR 6 challans under which they had discharged the tax. I also find from the records that there were correspondence exchanging views between the appellants and their Range authority and they had taken the credit on a later occasion as advised by the Range authorities and in such a fact
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