Availment of cenvat credit
This query is : Resolved
21 October 2013
Dear All
My Client had got the notice from Anti -Evasion of Service tax dept.due to below reason :
My Client is having beauty parlour business
My Client had taken a single registration in the name of the company in Mumbai & also providing services at various state(Branches) with out having registration of service tax in particular state & also availed cenvat Credit for Rent of Branches at Mumbai & also file ST-3 in single registration considering the revenue and cenvat credit of branches .
this way branches are operated from 1.09.2012 to 15.02.2013 & on 16.02.2013 Company has applied the Centralised Registration
Now Department is disallowing Cenvat Credit taken for the period from 1.09.2012 to 15.02.2013 by intimating that the same has been availed with out having Registration of Branches or Centralised Registration
Now My query is whether their is any provision in Service tax whereby assessee can availed Cenvat without registration or pl.quote the case law resemble my case . .
Tks
catarunshah@rediffmail.com
My Client had got the notice from Anti -Evasion of Service tax dept.due to below reason :
My Client is having beauty parlour business
My Client had taken a single registration in the name of the company in Mumbai & also providing services at various state(Branches) with out having registration of service tax in particular state & also availed cenvat Credit for Rent of Branches at Mumbai & also file ST-3 in single registration considering the revenue and cenvat credit of branches .
this way branches are operated from 1.09.2012 to 15.02.2013 & on 16.02.2013 Company has applied the Centralised Registration
Now Department is disallowing Cenvat Credit taken for the period from 1.09.2012 to 15.02.2013 by intimating that the same has been availed with out having Registration of Branches or Centralised Registration
Now My query is whether their is any provision in Service tax whereby assessee can availed Cenvat without registration or pl.quote the case law resemble my case . .
Tks
catarunshah@rediffmail.com
21 October 2013
from your query it appears that you have been conducting business from various premises and showing the output from all premises as if centralized. Input has been availed at in various branches, whose premises were not registered.
Input documents should state the name,address and STC of the service provider, the nature of service rendered and and the name and address of the service recipient.
Service tax registration is premises based, and if service is rendered from a different premises then it is unregistered premises. Therefore, central excise being procedure oriented, if all formalities are not met then there is a technical default, the authorities are right in their stand. It also appears that the branches are outside Bombay, hence the jurisdiction and Commisssionerate of each premises would be different. Hence the Department stand is correct.
Further since the services were rendered from unregistered premises, under different Commissionerates, the respective jurisdictional Commissioners would issue SCN to premises for non registration and non filing of returns. this again is a technical default - there has been no loss of revenue and hence at higher appellate stages full relief would be available, the availment of cenvat credit from unregistered premises may also be allowed on the sole ground that the assessee has not supressed his turnover and honestly paid all tax due.
But technically the stance of the Department is valid and correct.
Input documents should state the name,address and STC of the service provider, the nature of service rendered and and the name and address of the service recipient.
Service tax registration is premises based, and if service is rendered from a different premises then it is unregistered premises. Therefore, central excise being procedure oriented, if all formalities are not met then there is a technical default, the authorities are right in their stand. It also appears that the branches are outside Bombay, hence the jurisdiction and Commisssionerate of each premises would be different. Hence the Department stand is correct.
Further since the services were rendered from unregistered premises, under different Commissionerates, the respective jurisdictional Commissioners would issue SCN to premises for non registration and non filing of returns. this again is a technical default - there has been no loss of revenue and hence at higher appellate stages full relief would be available, the availment of cenvat credit from unregistered premises may also be allowed on the sole ground that the assessee has not supressed his turnover and honestly paid all tax due.
But technically the stance of the Department is valid and correct.
31 October 2013
Dear Sir
Many thanks for your reply but as per rule 9 for availment of cenvat credit no where it is mention that assesses should be regd.with the dept.it gives only information about docs.reqd.for cenvat credit should i put this argument with the dept...pl.reply
Many thanks for your reply but as per rule 9 for availment of cenvat credit no where it is mention that assesses should be regd.with the dept.it gives only information about docs.reqd.for cenvat credit should i put this argument with the dept...pl.reply
01 November 2013
You are right - but Rule 4 mentions the input service documents: should bear the name,address,STC No., nature of service rendered, the consideration for the service rendered, the amount of service tax and the name and address of the service recipient. If either the name or address of the service recipient is different from the registered name and address the input service has not been rendered to the registered service recipient.
As I have earlier stated this is just a technical default, but the Department will pursue the matter with full zest expecting to realize either Duty or Booty.
Your submission as per Rule 9 is perfect, but you will be penalised under Rule 4, availing of CENVAT credit without proper input documents - hence not entitled to input credit.
As I have earlier stated this is just a technical default, but the Department will pursue the matter with full zest expecting to realize either Duty or Booty.
Your submission as per Rule 9 is perfect, but you will be penalised under Rule 4, availing of CENVAT credit without proper input documents - hence not entitled to input credit.
02 November 2013
Dear sir
Thanks for your reply .if you give me email id of your i will scan Input credit docs.for your ref.the docs.have all the information as stated by you i.e Service Provider Reg.No.,Name And Address ...Pl.Do the needful
Thanks for your reply .if you give me email id of your i will scan Input credit docs.for your ref.the docs.have all the information as stated by you i.e Service Provider Reg.No.,Name And Address ...Pl.Do the needful
03 November 2013
suresh.ramaswamy.taxcon@gmail.com
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