Order Date – 25 January 2024

Parties: M/s Antares Services Pvt. Ltd. Vs The Commissioner of Central Excise, Chandigarh

Facts –

• The Appellant, M/s Antares Services Private Limited, have registered themselves for provision of services like “Manpower Recruitment/ Supply Agency Service” and “Commercial Training or Coaching Service”.
• A show cause notice was issued dated 13.11.2019 relying on the data supplied by the Income Tax Department proposing to recover tax along with duty alleging that the appellants have not filed ST-3 Returns for the period April 2014.
• The appellants contented that they have enough credit to pay the demanded service tax and have discharged the same whereas Department contended that the appellants have taken credit on the invoices beyond the permissible period of one year and therefore, credit is not admissible and the demand was confirmed.

Issue –

• Whether the appellants can take credit on the invoices beyond the permissible period of one year?

Order –

• The Tribunal observed that CENVAT credit on input and input services can only be availed within a period of six month or one year (w.e.f. 01.03.2015) from the date of invoice and in the instant case, time period of one year has already elapsed and moreover, the appellants have not claimed the CENVAT credit in the ST-3 Returns.
• Further, the Tribunal in the case of Origin Learning Solutions Pvt. Ltd. held that CENVAT credit cannot be denied for the reason that such availment was not reflected in ST-3 Returns. Also found that Tribunal and High Courts have been consistently holding that a substantial rate of eligibility to CENVAT credit cannot be denied on the basis of procedural violations.
• In the instant case, it is not disputed that the appellants have availed the services; paid the service tax on the same and are in possession of documents indicating such availment. Hence credit cannot be denied only because it has been utilized late. Moreover, the show-cause notice has been issued on the basis of third-party information. In the absence of evidence of suppression, mis-statement, fraud, collusion etc.,, extended period cannot be invoked.
• The appeal is allowed.