Order Date – 29 April 2024

Parties: M/s. Tata Steel Downstream Products Ltd. Vs Commissioner of GST and Central Excise

Facts –

• The Appellant, M/s. Tata Steel Downstream Products Ltd., has raised 3 supplementary invoices due to increased packing cost on their customer Viz., M/s. Tata Steel Ltd., for whom they are working as a job worker and have paid the service tax including cesses. The same were rejected by them hence the appellant availed credit of excess service tax paid. Later the appellant raised revised supplementary invoice which was paid adjusting the service tax amount already paid in respect of 3 supplementary invoices earlier raised.
• A Show Cause Notice dated 10.10.2019 was issued to the Appellant seeking to demand and recover an amount paid adjusting the service tax besides proposing to levy interest under Section 75 and to impose penalty under Section 76 of the Act.

Issue –

• Whether the appellant is eligible to make adjustment of excess service tax paid against future service tax liability?

Order –

• The Tribunal affirmed the decision of the Lower Appellate Authority holding that the appellant is eligible for adjustment of the service tax liability on the subsequent supplementary invoice raised against the excess service tax paid on the original supplementary invoices which were not paid by their customer Viz., M/s. Tata Steel Limited.
• Further noticed that the appellant has submitted Chartered Accountant’s Certificate to the effect that they have cancelled 3 supplementary invoices raised originally and that they have not received any consideration in respect of these invoices.
• Hence the impugned Order dated 28.10.2022 is not sustainable. The appeal is allowed.