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[Cites 4, Cited by 0]

Custom, Excise & Service Tax Tribunal

Anand Automotive Ltd vs Service Tax - Delhi on 16 September, 2021

Author: Dilip Gupta

Bench: Dilip Gupta

     CUSTOMS, EXCISE & SERVICE TAX APPELLATE TRIBUNAL
                           NEW DELHI

                                  PRINCIPAL BENCH
                  SERVICE TAX APPEAL NO. 58840 OF 2013

(Arising out of Order-in-Original No. 15/COMMR./PKL/2013 dated 18.04.2013 passed by
the Commissioner, Central Excise, Panchkula, Haryana)

M/s. Anand Automotive Ltd                                         ....Appellant
1, Sri Aurobindo Marg,
Hauz Khas, New Delhi-110016


                                      Versus

Commissioner, Service Tax, Delhi                                ....Respondent
Service Tax Commissionerate, IAEA House,
17-B, I.P. Estate, M.G. Marg,
New Delhi-110002



APPEARANCE:
Shri B.L. Narasimhan with Ms. Shagun Arora and Shri Kunal Agarwal,
Advocates for the Appellant
Shri A. Thapliyal, Authorized Representative for the Respondent

CORAM:
HON'BLE MR. JUSTICE DILIP GUPTA, PRESIDENT
HON'BLE MR. P.ANJANI KUMAR, MEMBER (TECHNICAL)


                                     DATE OF HEARING: August 09, 2021
                                    DATE OF DECISION: September 16, 2021


                FINAL ORDER NO. 51818/2021


JUSTICE DILIP GUPTA


       M/s. Anand Automotive Limited 1 has filed this appeal to

assail the order dated April 18, 2013 passed by the Commissioner

of Central Excise, Panchkula 2, by which part of the demand of

service tax proposed in the show cause notice dated February 24,

2011 issued for the period of October 01, 2005 to September 30,

2010 has been confirmed.


1.     the appellant
2.     the Commissioner
                                                    2
                                                                         ST/58840/2013



         2.    A summary of the demand proposed in the show cause

         notice and confirmed/ dropped by the impugned order is given in

         the following Table:

Serial         Issue              Category of              Period         Service Tax/CENVAT
 No.                                Service                                  Credit demand
                                                                          confirmed/ dropped
  1.     Transit / Guest         Infrastructural          May 2006      Rs.1,03,40,124/- confirmed
         House     services    services under the            to           out of Rs.1,17,45,757/-
         provided to group         category of         September 2010
         companies              Business Support                        (Rs.14,05,633/- dropped on
                                Services ('BSS')                        account of wrong application
                                                                          of Section 72 of the Act)
  2.     Transfer         of   Manpower Supply          October 2005          Rs.23,07,497/-
         employees     group      Services                   to
         companies                                     September 2010
  3.     Non-payment      of      Not specified          10 May 2008         Rs.2,27,95,269/-
         service   tax    on                                  to
         accrual basis of                              September 2010   (By letter dated 29.01.2019,
         'income     accrued                                            the Assistant Commissioner
         but not due' from                                              has issued a compliance
         Associated                                                     report wherein payment of
         Enterprises                                                    Rs.2,27,72,925/- has been
                                                                        acknowledged.)
  4.     Short payment of         Not specified            May,         Demand dropped on merits
         Service Tax as per                                June
         gross        value                                 and
         mentioned in ST-3                              August 2006
         return
  5.     Wrongful                 Not specified        November 2005    Demand dropped on merits
         adjustment      of                                  to
         Service Tax under                               March 2007
         Section 6(4A) of
         the Rules
  6.     Difference               Not specified          April 2006            Rs.2,14,001/-
         between ST-3 &                                     and
         Balance Sheet                                   March 2007
  7.     Wrong Availment          Not applicable          April 2006           Rs.3,53,483/-
         of CENVAT Credit                                    and
                                                          April 2008
                          Total                                              Rs.3,60,10,374/-



         3.    The appellant is a part of Anand Group of Companies, which

         comprises of 15 companies. It is engaged in the field of

         manufacture and sale of automotive parts. The appellant provided

         consultancy service exclusively to its group companies only and

         received professional fees, internal audit fees and training fees

         from its group companies in relation to consultancy services. The
                                     3
                                                          ST/58840/2013



appellant had paid service tax on the said amount received under

the category of 'management consultancy service'. The appellant

also maintains transit house/ guest houses situated at Mumbai,

Gurgaon, Parwanoo, Pune and Chennai for the purpose of

providing accommodation to the employees of its group companies

visiting the said places on official visit, i.e. for business work of the

group companies only.      According to the policy of the company,

the said transit houses cannot be used for personal use of the

employees. The charges of the said transit house were as per the

pre-determined tariff. For recovery of the transit house charges,

bills were raised by the appellant at the end of the month to the

group companies whose employees had availed the said facility in

that particular month.       The income generated through rent

received in relation to the said transit houses was booked by the

appellant under the head of 'transit house income'. As part of the

Anand Group's policy decision, the employees of the group

companies also got transferred to other group companies. In spite

of this inter-company transfer of personnel, they continued to

remain on the rolls of the company where they were recruited.

However, their salary and all other remuneration were paid by the

company they were working for and the same was routed through

the appellant.

4.      A show cause notice dated April 20, 2011 was issued to the

appellant for the period from May 01, 2006 to September 30,

2010.    The appellant filed a reply to the show cause notice and

ultimately, by an order dated April 18, 2013, the Commissioner

confirmed the demand of Rs.3,56,56,891/- towards service tax and
                                      4
                                                            ST/58840/2013



Rs.3,53,483/- towards CENVAT credit.              Thus, a demand of

Rs.3,60,10,374/- was confirmed with penalty under sections 77

and 78 of the Finance Act 1994 3.

5.      The issues, therefore, that arise for consideration in this

appeal are issues at serial nos. 1,2,6 and 7 of the Table contained

in paragraph 2 of this order.            It needs to be noted that the

demands in respect of issues at serial nos. 4 and 5 have been

dropped, while with regard to the issue at serial no.3, the amount

with interest has been paid and the appellant does not dispute this

demand.


6.      Each of the issues shown at serial nos. 1,2,6 and 7 will now

be considered separately.


     Service tax under BSS on the transit house income


7.   The appellant owns guest houses at various places and allows

them to be used by employees of group companies while on official

tours. For such use, the appellant charges its group companies and

issues debit notes. Some portion of guest houses are also used for

residence of employees of the appellant, in addition to those of its

group     companies.      The    appellant    recovers   electricity   and

maintenance charges from such employees, which also form part

of transit house income in the books of accounts and according to

the appellant it is not susceptible to service tax as the same would

be service to self. The appellant contends that these submissions,

corroborated     by   relevant    invoices,   were   made    before    the

Commissioner in reply to the show cause notice, but there is no


3.      the Finance Act
                                       5
                                                               ST/58840/2013



advertence to this reply and the demand has been confirmed

without any reasoning.


8.    It would be seen that the demand was proposed under

'infrastructural' service under the category of 'support service of

business and commerce' 4, as defined under section 65 (105)(104c)

of the Finance Act.         It would, therefore, be appropriate to

reproduce the same:

      "Section 65 (104c):           Support services of business or
      commerce" means services provided in relation to business or
      commerce and includes evaluation of prospective customers,
      telemarketing, processing of purchase orders and fulfilment services,
      information and tracking of delivery schedules, managing distribution
      and logistics, customer relationship management services,
      accounting    and    processing    of   transactions, operational  or
      administrative assistance in any manne, formulation of customer
      service and pricing policies, infrastructural support services and
      other transaction processing.

      Explanation.--For the purposes of this clause, the expression
      "infrastructural support services" includes providing office
      along with office utilities, lounge, reception with competent
      personnel to handle messages, secretarial services, internet
      and telecom facilities, pantry and security;"


                                                    (emphasis supplied)


9.    It needs to be noted that BSS was made taxable under

section 65 (105) (zzzq) of the Finance Act.                 This section is

reproduced below:

      "Section 65 (105)(zzzq): to any person, by any other person, in
      relation to support services of business or commerce, in any
      manner."



10.   Learned counsel for the appellant submitted that                        the

provision of housing facility on short term basis is specifically

covered under the scope of 'short-term accommodation services'

as defined in section 65(105)(zzzzw) of the Finance Act and this

service became taxable only from May 01, 2011. The appellant


4.    BSS
                                       6
                                                               ST/58840/2013



has, accordingly, been paying service tax under the said category

from May 01, 2011 onwards. The contention, therefore, that has

been advanced by Shri B.L. Narasimhan learned counsel for the

appellant is that since the subject activities of the appellant have

been made taxable only from May 01, 2011 under section

65(105)(zzzzw) of the Finance Act, the appellant cannot be

charged to service tax under any other category (such as BSS),

prior to this date. In this regard, learned counsel placed reliance on

the following decisions:


             a.  Quippo Oil and Gas Infrastructure               Ltd.   vs.
             Commissioner of Service Tax, New Delhi 5;
             b.    Global Coal & Mining Pvt. Ltd vs. Commissioner
             of Service Tax, Delhi 6;
             c.  Malviya National Institute of Technology vs.
             Commissioner of Service Tax, Jaipur 7; and

             d.     Indian National Shipowners Association v. Union
             of India 8.



11.   This submission advanced by learned counsel for the

appellant has not been accepted by the Commissioner and the

observations in this regard are as follows:

             "I find that the fact that the noticee have now got
             registered with the Service Tax department under the
             new service of Guest House in Act, w.e.f. May 01, 2011,
             does not alter the Service Tax liability of the noticee
             under the category of Business Support Services as the
             activities undertaken by the noticee to the employees
             of the group companies were only with respect to their
             official visits, therefore, were in the nature of
             Infrastructural Support services. In other words, said
             transit houses were not merely providing accommodation as
             in the case of 'Guest House' services that to for a continuous
             period of less than three months but were providing all kind
             of facilities such as food etc. and were established with a
             purpose to specially promote business of the company/ group
             and save cost of the group companies. The services
             provided by the noticee were distinguishable as same
             were exclusively meant for employees of the group

5.    2020   (11)   TMI 437- CESTAT New Delhi
6.    2020   (36)   GSTL 77 (Tri.-Del.)
7.    2019   (28)   GSTL 472 (Tri.- Del.)
8.    2009   (14)   STR 289 (Bom.)
                                      7
                                                               ST/58840/2013



           companies in furtherance of business and commerce of
           the said group companies and not meant for any other
           persons or general public as in the case of 'Guest
           House'      services,    therefore,     the    said    services
           undertaken by the noticee were correctly classifiable
           under "Business Support Services" as nature of said
           services were for providing Infrastructural Support in
           the course of business of the said group companies
           whereas 'Guest House' services are not exclusively
           meant for the business persons only but could be used
           for any purpose and any person. On the basis of above, I
           find that ratio of judgments cited by the noticee are not
           applicable as activities undertaken by the noticee were
           already covered by the existing entry i.e. Business Support
           Services and the fact that they have obtained Service Tax
           registration under 'Guest House' services w.e.f May 01,
           2011 does not alter the situation as the noticee have obtained
           the Service Tax registration on their own volition under 'Guest
           House' service and paying Service Tax accordingly. Therefore,
           the Service Tax liability of the noticee for the previous period
           remains un-altered under the correct category of "Business
           Support Services" irrespective of the subsequent voluntary
           action of the noticee in obtaining Service Tax registration
           under the category of 'Guest House' service."

                                                   (emphasis supplied)




12.   The submission advanced by the learned counsel for the

appellant deserves to be accepted. The provision of housing facility

on short-term basis is specifically covered under "short-term

accommodation services", which has been subjected to service tax

w.e.f. May 01, 2011 under section 65(105) (zzzzw) of the Finance

Act. As this service is a new entry and has not been carved out

from any other existing service, it cannot be included under any

other category, including BSS, prior to May 01, 2011.


13.   This is what was held by Bombay High Court in Indian

National Shipowners' Association. The Bombay High Court

observed that introduction of a new entry and inclusion of certain

services in that entry would pre-suppose that there was no earlier

entry covering the said services. It was also observed that creation

of the new entry was not by way of amending the earlier entry and
                                      8
                                                               ST/58840/2013



it was not carved out of any earlier entry. The relevant portion of

the judgment of the Bombay High Court is reproduced below:-

           "37. Entry (zzzzj) is entirely a new entry. Whereas entry
           (zzzy) covers services provided to any person in relation to
           mining of mineral, oil or gas, services covered by entry
           (zzzzj) can be identified by the presence of two characteristics
           namely (a) supply of tangible goods including machinery,
           equipment and appliances for use, (b) there is no transfer of
           right of possession and effective control of such machinery,
           equipment and appliances. According to the members of the
           1st petitioner, they supply offshore support vessels to carry
           out jobs like anchor handling, towing of vessels, supply to rig
           or platform, diving support, fire fighting etc. Their marine
           construction barges support offshore construction, provide
           accommodation, crane support and stoppage area on main
           deck or equipment. Their harbour tugs are deployed for
           piloting big vessels in and out of the harbour and for
           husbanding main fleet. They give vessels on time charter
           basis to oil and gas producers to carry out offshore
           exploration and production activities. The right of possession
           in and effective control of such machinery, equipment and
           appliances is not parted with. Therefore, those activities
           clearly fall in entry (zzzzj) and the services rendered by the
           members of the 1st petitioner have been specifically brought
           to the levy of Service Tax only upon the insertion of this new
           entry.
           38. If the Department's contention is accepted that
           would mean that the activities of the members of the
           1st petitioner are covered by entry (zzzy) and entry
           (zzzzj). Such a result is difficult to comprehend
           because entry (zzzzj) is not a specie of what is covered
           by entry (zzzy). Introduction of new entry and
           inclusion of certain services in that entry would
           presuppose that there was no earlier entry covering the
           said services. Therefore, prior to introduction of entry
           (zzzzj), the services rendered by the members of the
           1st petitioner were not taxable. Creation of new entry is
           not by way of amending the earlier entry. It is not a carve out
           of the earlier entry. Therefore, the services rendered by the
           members of the 1st petitioner cannot be brought to tax under
           that entry."

                                                   (emphasis supplied)


14.   This judgment of the Bombay High Court was followed by the

Tribunal in Quippo Oil and Gas Infrastructure Ltd.; Global

Coal & Mining Pvt. Ltd and Malviya National Institute of

Technology.


15.   Even otherwise, accommodation or guest house facility does

not form part of infrastructural service and, therefore, cannot be

treated as provision of BSS. This follows from the definition of BSS
                                           9
                                                                ST/58840/2013



in section 65 (104c) of the Finance Act and the Explanation

contained therein. BSS means service provided in relation to

business     and        commerce     and       includes,   amongst       others,

infrastructural support services. Services under the Explanation

includes providing office alongwith office utilities, lounge, reception

with   competent         personnel   to       handle   messages,      secretarial

services, internet and telecom facilities, pantry and security.

16.    Thus, infrastructural support services includes only the

service specified in the Explanation, which essentially includes

setting up office spaces.        Thus, accommodation or guest house

facility will not form part of infrastructural support services and

cannot be treated as provision of BSS.

17.    In this connection, reference can be made to the decision of

the    Tribunal    in    Air   Liquide        North    India   Pvt.    Ltd.    vs

Commissioner of Central Excise, Jaipur 9 and the observations

are as follows:


             "8.    In the present case, the admitted facts are that the
             appellant engaged in the manufacture and sale of various
             types of industrial gases. They have entered into agreement
             with various clients for sale of such industrial gases. In
             respect of some of the clients they have also entered into
             separate agreements to provide certain plant and machinery
             or mostly, gas storage facilities along with necessary
             accessories. We have perused some of these agreements. In
             case of supply of equipments, plant and machinery, the
             appellants are entering into of lease agreement and the
             consideration is termed as 'lease rental charges'. In most of
             the cases, the appellants are engaged in providing gas
             storage facility along      with connected accessories. The
             agreements entered into for putting up these facilities
             at the client's premises are co- terminus with sale and
             purchase agreement for supply of gas. This makes it clear
             that the storage facility is closely linked with sale of gas by
             the appellant. In other words, the creation and
             maintenance of such facility in the client's premises is
             in furtherance of facilitating such sale of gas, by the
             appellant and purchase of same for industrial use by
             the client. It is a beneficial arrangement for both. In


9.     2017 (4) G.S.T.L. 230 (Tri.-Del.)
                                       10
                                                                 ST/58840/2013



            such situation it will not be correct to consider the
            amount received towards lease rent/facility fee etc. as
            consideration for providing business support to the
            client. In Royal Western India Turf Club Ltd. 10, the
            Tribunal held that providing place within the premises of the
            turf club by way of stall or canteen for consideration, is
            nothing but hiring or leasing of immovable property and
            cannot be considered as business support service.

            9.     In Mundra Port & Special Economic Zone Ltd. 11, ,
            the Tribunal held providing railway lines inside the port area
            for the railways to move the wagons cannot be considered as
            providing infrastructural facilities to the railways. It is a
            beneficial arrangement for both the parties and there is no
            service of business support by one to another.

            10.      The appellants strongly pleaded that the scope of
            infrastructure support as mentioned under tax entry 'business
            support service' will not cover the present case. Reliance
            was placed on the explanation to state that the nature
            of activities which are to be generally considered as
            infrastructural support service can be ascertained from
            such inclusive definition. These are mainly administrative
            and office related support. The type of activities like putting
            up and managing gas storage facility in industrial unit are not
            fitting into overall scope of the infrastructural support service
            as contemplated by the inclusive definition given in the
            explanation. We note that though the activities of the
            appellant, can be brought under very generic
            understanding         of   infrastructure     support,     when
            examined with statutory scope as per explanation
            indicating nature of services which are to be brought
            under tax net than it would appear that the present
            activity will not get covered under the said tax entry.
            We also take note that in legal interpretation, there are
            situation where the word 'includes' in certain context be a
            word      of  limitation South       Gujarat    Roofing Tiles
            Manufactures 12. In certain situations the nature of included
            items would not only partake of the character of the whole,
            but may be construed as clarificatory of the whole. In the
            present case even considering the explanation for
            infrastructural support service is only defined in an inclusive
            way, still it will not be incorrect to hold such inclusive
            definition will throw light upon what are all the nature of
            services which are sought to be taxed."

                                                     (emphasis supplied)



18.   The aforesaid decision of the Tribunal was upheld by the

Rajasthan High Court in Commissioner of Central Excise and

Service Tax, Alwar vs. Air Liquide North India P. Ltd. 13




10.   2 015 (38) S.T.R. 811 (Tri. Mum)
11.   2 012 (27) S.T.R. 171 (Tri. Amd)
12.   1977 (1) SCR 878
13.   2019 (27) GSTL 194(Raj.)
                                   11
                                                          ST/58840/2013



19.   Thus, for the reasons stated above, the Commissioner was

not justified in confirming the demand on the amount received for

transit house under the category of BSS.


                   Manpower supply services


20.   The impugned order has confirmed the demand of service

tax against the appellant under the category of 'manpower

recruitment and supply agency service' on the ground that the

appellant was supplying manpower to its group companies.


21.   According to the appellant, it deputes its employees to the

group companies. In such cases, the group companies reimburse

the salary of the employees to the appellant during the tenure of

the deployment and so it cannot be said that the appellant is

supplying any manpower as the appellant is not 'engaged' in

rendering services of supply of manpower. In this connection,

reliance has been placed on the following decisions:


           a.   Commr. of Central Excise            vs.   Computer
           Sciences Corpn. India P. Ltd. 14;

           b.  Lowe's    Services    India  Pvt.   Ltd   vs.
                                                       15
           Commissioner of Central Tax, Bangalore North .


22.   In Computer Sciences Corporation India P. Ltd., the

Allahabad High Court made the following observations:


           "8. In the present case, the Commissioner clearly
           missed the requirement that the service which is
           provided or to be provided, must be by a manpower
           recruitment or supply agency. Moreover, such a
           service has to be in relation to the supply of
           manpower. The assessee obtained from its group
           companies directly or by transfer of the employees, the
           services of expatriate employees. The assessee paid the


14.   2015 (37) S.T.R. 62 (All.)
15.   2021(2) TMI 1022-CESTAT Bangalore
                                      12
                                                                ST/58840/2013



            salaries of the employees in India, deducted tax and
            contributed to statutory social security benefits such as
            provident fund. The assessee was also required to remit
            contributions, which had to be paid towards social security
            and other benefits that were payable to the account of the
            employees under the laws of the foreign jurisdiction.
            There was no basis whatsoever to hold that in such a
            transaction, a taxable service involving the recruitment or
            supply of manpower was provided by a manpower
            recruitment or supply agency. Unless the critical
            requirements of clause (k) of Section 65(105) are fulfilled,
            the element of taxability would not arise."

                                                (emphasis supplied)



23.   In Lowe's Services India, the Tribunal observed:


            6.3. Further, after examining the various definitions cited
            supra, we find that in order to classify any service under the
            manpower recruitment or supply agency service the following
            conditions need to be satisfied:


               i. The agency must be any person
               ii. It must be engaged in providing a specified service
               iii. The specified service is recruitment or supply of
                    manpower
               iv. The service can be provided "temporarily or otherwise‟
               v. The service may be provided directly or indirectly
               vi. The service may be provided in any manner vii. The
                    service must be provided to any other person



24.   After relying upon the earlier decisions of the Tribunal and

the High Court, the Tribunal in Lowe's Services India set aside

the demand raised by the Department under the category of

manpower recruitment.


25.   The following decisions relied upon by learned counsel for the

appellant have also taken the same view:



            a.    Mikuni India Pvt. Ltd. vs. Commissioner of
            Central Goods and Service Tax, Customs & Central
            Excise 16;

            b.  Indian Yamaha Motor Private Limited vs.
            Commissioner of Central Excise & Service Tax,


16.   2019 (8) TMI 8- CESTAT New Delhi
                                        13
                                                                  ST/58840/2013



              New Delhi 17;

              c.    Mikuni India Pvt. Ltd vs. Commissioner of
              Central Goods and Service Tax, Customs & Central
              Excise 18;
              d.    Punj Lloyd Ltd. vs. Commissioner of Service
              Tax, Delhi 19;

              e.     Commissioner of Serivce Tax vs. Arvind Mills
              Ltd. 20; and

              f.   Spirax Marshall P. Ltd. v. Commissioner of
              Central Excise, Pune-I 21.



26.   In view of the factual position stated above and the decisions

referred to above, it has to be held that the appellant is not

engaged in rendering supply of manpower service.


              Difference between ST-3 and balance sheet


27.   The impugned order has confirmed the demand of service

tax of Rs. 2,14,001/- only on the ground that there is a difference

in value appearing in the ST-3 returns and the balance sheet.


28.   The findings recorded by the Commissioner in this regard are

as follows:

              "I have gone through the facts of the case and various
              submissions made by the noticee in respect of this
              demand of Rs. 2,14,001/- and find that the figures
              mentioned by the noticee at this stage do not co-relate
              with the figures mentioned in their statutory records ,
              therefore, the plea taken by the noticee is not acceptable.
              In view of the above, I hold that the noticee have failed to
              reconcile the figures and justify the difference noticed by
              the department in their statutory records and ST-3
              Returns for the period under dispute. Accordingly, I
              confirm the demand of Rs 2,14,001/- raised by the
              department on this issue."




17.   2019 (7) TMI 772- CESTAT New Delhi
18.   2019 (8) TMI 260-CESTAT New Delhi
19.   2019 (22) GSTL 85 (Tri.- Del.)
20.   2014 (35) STR 496 (Guj.)
21.   2016 (44) STR 310 (Tri.- Mumbai) maintained by Supreme Court
      of India in 2016 (44) STR J153 (SC)
                                  14
                                                          ST/58840/2013



29.    Learned counsel for the appellant submitted that the said

demand is not sustainable as the impugned proceedings have

failed to identify the specific category of taxable service under

which such demand has been confirmed and in any case, the

difference has arisen only because the appellant reported wrong

value on cum-tax basis in the ST-3 returns, while it had paid

service tax on the correct value. While calculating the cum-tax

value, the appellant applied the rate of service tax @ 10.20%,

whereas it paid service tax @ 12.24%.


30.    The   submission   advanced     by   learned   counsel   for    the

appellant deserves to be accepted. The appellant had clearly

explained the difference in the values appearing in the Service Tax

Return and the Balance Sheet. The reason stated was that the

appellant had reported wrong value-cum-tax basis in the Service

Tax Return, whereas the appellant paid service tax on the correct

value. These facts were placed before the Adjudicating Authority

with   supporting    documents   but    the   same    have   not      been

considered. The explanation offered by the appellant was required

to be examined. Thus, for the reason that the category of taxable

service under which the demand was confirmed has not been

specified and for the reason that the appellant has satisfactorily

explained the difference in the tax value, the demand under this

head cannot be sustained.


                    Wrong availment of credit


31.    The impugned order has confirmed the demand of CENVAT

credit for the months of April, 2006 and April, 2008 on the ground
                                     15
                                                             ST/58840/2013



that the closing balance as per Service Tax-3 returns in the months

of March, 2006 and March, 2008 was NIL.


32.   The findings recorded by the Commissioner in the impugned

order on this issue are as follows:

            "I have gone through the facts of the case and various
            submissions made by the noticee and find that copies of
            the Ledger Accounts etc. produced by the noticee are
            mere     un-authenticated    and   un-attested   computer
            generated print outs and cannot be relied upon to accept
            the claim of the noticee that there was some balance of
            Cenvat Credit as on 31.03.2006 and also on 30.09.2008
            instead of NIL balance shown themselves in the ST-3
            Returns. In the absence of any documentary evidence and
            any Chartered Accountant Certificate confirming and
            certifying the said figures as closing Balance of Cenvat
            Credit, the plea of the noticee cannot be considered. In
            view of the above, I disallow the Cenvat Credit amounting
            to Rs 3,53,483/-( Rs 1,12,182/- and Rs 2,41,301/-) and
            confirm the demand of Rs 3,53,483/- in respect of this
            issue."


33.   Learned counsel for the appellant submitted that the closing

balance in Service Tax-3 returns was inadvertently shown as NIL in

the months of March, 2006 and March, 2008, while such balance

was existing in the credit ledger of the appellant. The said facts

were duly presented by the appellant before the Adjudicating

Authority along with supporting documents, but the same have not

been adverted to by the Adjudicating Authority. In this connection,

the certificate of the Chartered Accountant was also filed.


34.   It is seen that the Commissioner has not examined the

documents that were on record. It would, therefore, be appropriate

to remand the matter to the Commissioner to examine this issue,

after taking into consideration the documents, including the

Chartered Accountant certificates which are at pages 1428 to 1435

and 1470 of the appeal memo.
                                  16
                                                       ST/58840/2013



35.    It therefore, follows that the order dated April 18, 2013

passed by the Commissioner, except to the extent it has confirmed

the demand of CENVAT credit for the months of April 2006 to April

2008, cannot be sustained and is set aside.         So far as the

confirmation of demand of CENVAT credit for the months April

2006 to April 2008 is concerned, the Commissioner shall re-

examine the matter in the light of the observations made above.

The appeal is, accordingly, allowed to the extent indicated above.



               (Pronounced in Open Court 16.09.2021)




                                           (JUSTICE DILIP GUPTA)
                                                      PRESIDENT




                                               (P.ANJANI KUMAR
                                            MEMBER (TECHNICAL)


Archana/JB
                                     17
                                                            ST/58840/2013




 CUSTOMS, EXCISE & SERVICE TAX APPELLATE TRIBUNAL
                    NEW DELHI

                           PRINCIPAL BENCH
           SERVICE TAX APPEAL NO. 58840 OF 2013

(Arising out of Order-in-Original No. 15/COMMR./PKL/2013 dated 18.04.2013
passed by the Commissioner, Central Excise, Panchkula, Haryana)

M/s. Anand Automotive Ltd                                 ....Appellant
1, Sri Aurobindo Marg,
Hauz Khas, New Delhi-110016


                              Versus

Commissioner, Service Tax, Delhi                        ....Respondent
Service Tax Commissionerate, IAEA House,
17-B, I.P. Estate, M.G. Marg,
New Delhi-110002



APPEARANCE:
Shri B.L. Narasimhan with Ms. Shagun Arora and Shri Kunal Agarwal,
Advocates for the Appellant
Shri A. Thapliyal, Authorized Representative for the Respondent

CORAM:
HON'BLE MR. JUSTICE DILIP GUPTA, PRESIDENT
HON'BLE MR. P. V. SUBBA RAO, MEMBER (TECHNICAL)

                                    Date of Hearing: August 09, 2021
                                   Date of Decision: September 16, 2021


                                 ORDER

Order pronounced.

(JUSTICE DILIP GUPTA) PRESIDENT (P.V. SUBBA RAO) MEMBER (TECHNICAL) JB