Thursday, January 28, 2016

Service Tax Court Case - GAIL V/s Central Excise


GAIL V/s COMMISSIONER OF CENTRAL EXCISE AND SERVICE TAX,  NEW DELHI

BRIEF: If a person is discharging service tax liability from his registered premises, the benefit of cenvat credit on the service tax paid by the service provider cannot be denied, only on the ground that the invoices are in the name of branch offices which were not separately registered.

OUR COMMENTS: The assessee is in the business of natural gas to industrial and other consumers. One of its unit was providing the taxable output service of supply of goods through pipeline to local consumers and others from pipelines at various other destinations. It also had various compressor stations supplying output service of conveyance of gas. It took cenvat credit on the basis of invoices raised by one of its compressor stations which was not registered separately.

The Department issued a show cause notice proposing denial of cenvat credit along with interest and penalties.

The Hon’ble CESTAT held that if a person is discharging service tax liability from his registered premises, the benefit of cenvat credit on the service tax paid by the service provider cannot be denied, only on the ground that the invoices are in the name of branch offices which were not separately registered.

Accordingly, the impugned order was unsustainable and quashed.

[Decided in favor of assessee]

Source:
TAX CONNECT
JAV & ASSOCIATES
Chartered Accountants

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