Service Tax
TRT-2025-
Cestat Chennai
Date:-26-10-23
In:-
Issue Favourable to Tax Payer ?:-
Order Date – 26 October 2023
Parties: M/s. United India Insurance Company Ltd Vs Commissioner of GST and Central Excise
Facts –
- The Appellant, M/s. United India Insurance Company Ltd, made a request for provisional assessment for the year 2009-2010 and was granted to them on 10.03.2009.
- On finalization the original adjudicating authority disallowed CENVAT of Service Tax paid under the category of ‘Service or Repair of Motor Vehicles’ carried out by Authorized Service Station on the ground that the invoices on which the credit has taken by assessee mentioned the name of clients of the assesse.
- Consequent to appeal filed by the appellant the Commissioner (Appeals) held that the assessee is eligible for credit, thereafter they filed a refund claim. The refund sanctioned authority sanctioned the refund. However the department filed an appeal against the same and the Commissioner (Appeals) allowed the appeal.
Issue –
- Whether the credit can be disallowed alleging that the invoices bear the name of the vehicle owner?
Order –
- The Tribunal observed that the very same issue was considered by the Tribunal in the assessee’s own case M/s. United India Insurance Co. Ltd. in which it was held that “the invoices will be issued by the ASS only in favour of the vehicle owners who took the vehicle to them for repair.”
- Further held that “There is also nothing on record to suggest that the owner of the vehicle has also made claims for Cenvat credit. Consequently, we are of the view that not having the invoice in favour of the appellant should be considered only as a procedural infraction and should not be used to deny the credit which otherwise they are eligible.”
- After appreciating the facts and noting that the Commissioner (Appeals) has allowed the credit after which the refund has been sanctioned to the appellant, held that the denial of credit is without any legal or factual basis.
- The appeal filed by the assessee is allowed. The appeal filed by the Department is dismissed.
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