Service Tax
TRT-2025-
Cestat Ahmedabad
Date:-16-08-22
In:-
Issue Favourable to Tax Payer ?:- 0
Order Date: 16 August 2022
Facts-
- The Appellant, Gurukrupa Engineering Company have availed Cenvat credit on the invoices issued by service provider M/s. Shree Enterprises-Kutch. On the investigation, it was found that the so called service provider M/s. Shree Enterprises have not issued the invoice, on the basis of which the appellant have taken the credit therefore, the credit was denied to the appellant.
- The appellant submitted that against such invoice, the payment of principal amount along with service tax was made to the service provider therefore, on their part there is no mala fide or any violation of Cenvat Credit Rules therefore, credit could not have been denied on offence committed by the service provider.
- The appellant further submitted that the entire credit was denied on the basis of the statements given by the service provider wherein, he stated that they have not issued any invoice. On his request for cross examination of the person, the given statement has not been accepted by the adjudicating authority therefore, appellant requested that the matter may be remanded and the adjudicating authority may be directed to provide the cross examination.
Issue-
- Whether the appeal to remand back the matter to the adjudicating authority is sustainable?
Order-
- The Tribunal observed that it is incumbent on the adjudicating authority to provide cross examination of the issuer of the invoices. For not allowing the cross examination amounted to grave violation of the principles of natural justice.
- Accordingly, the impugned order is set aside and the matter remanded to the adjudicating authority for passing a fresh order after allowing the cross examination and the appellant is also directed to produce all the records in connection with the transaction of service from service provider to the appellant.
- The Appeal is allowed.
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