2018 (12) TMI 727 – CESTAT KOLKATA – TMI – CENVAT Credit – credit to be availed after payment of amount under Rule 4(7) – extended period of limitation – absence of allegation of suppression of facts – Held that:- Rule 4(7) of the Cenvat Credit Rules, 2004, states that “the Cenvat Credit in respect of input service shall be allowed, on or after the day that which payment is made of the value of input service and the service tax paid or payable as is indicated in invoice, bill or, as the case may be, challan referred to in Rule 9.”
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Rule 6(2A) of the Service Tax Rules, 1994 specifies that the date of payment in case of service tax shall be the date of presentation of cheque subject to realization of cheque – it is also found from the records that none of the cheque issued by the appellant were dishonored.
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Appeal allowed – decided in favor of appellant. – S.T. Appeal No.75423/18 – FO/76543/2018 – Dated:- 9-5-2018 – SHRI P. K. CHOUDHARY, JUDICIAL MEMBER Shri Sushil Kr. Goyal,
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mits that the appellant has maintained proper records in respect of all the receipts and consumption of input services under Rule 9 (6) of the Cenvat Credit Rules, 2004 as amended. It is his submission that the complete facts and figures were duly disclosed in the ST-3 Returns and proper records as required were being maintained by the appellant and therefore, there cannot be any allegation of suppression against the appellant and the extended period of limitation of five years is not invokable. The ld.C.A.for the appellant also submits that the demand is barred by limitation. 4. The ld.A.R. for the Revenue, reiterated the findings of the lower authorities. 5. Heard both sides and perused the appeal records. 6. On perusal of records, I find that Rule 4 (7) of the Cenvat Credit Rules, 2004, states that the Cenvat Credit in respect of input service shall be allowed, on or after the day that which payment is made of the value of input service and the service tax paid or payable as is indi
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that the issue is covered by the decision of the Co-ordinate Bench of the Tribunal in the case of India Cement Limited Vs. Commr. of Central Excise, Hyderabad : 2002 (150) ELT 1344. In this regard, the relevant Para is reproduced below: 8. We have carefully considered the submissions made by both sides. In the instant case, the penalties have been imposed on the appellants on the ground that there is a gap of few days between the date of presentation of cheque to their banker and the date of actual realisation of the amount by the Revenue. As can be seen that there is no dispute that the cheques presented by the appellants were subsequently encashed by the Revenue and no cheque was dishonoured and accordingly the date of presentation of the cheque has to be taken as the relevant date for the purpose of taking credit. Precisely this was the view taken by the Tribunal in the cases referred to above. Further more, the Commissioner himself has given a categorical finding that there was no
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