Allegation of Issuance of Bills in Name of Proprietor and other units: CESTAT sets aside Denial of Credit on Chartered Accountant Services [Read Order]

The Customs, Excise and Service Tax Appellate Tribunal ( CESTAT ), Chennai Bench set aside Denial of credit on Chartered Accountant services on the ground of Allegation of non-issuance of bills on appellant, M/s. Arkkays National Engineering & Foundry Co. Unit-I.

The appellant is a manufacturer of Bright Bars of the Free cutting steel, Carbon steel and alloy steel and are registered with the Central Excise Department. They were availing the facility of cenvat credit on various input services. During the course of audit of accounts, it was noticed that they have availed ineligible credit on Chartered Accountant Services.

The credit in respect of Chartered Accountant services has been denied alleging that the bills are not issued in the of the appellant, but has been issued in the name of an individual and other units of the appellant. In the Show Cause Notice it has been noted that credit availed on Chartered Accountant services are based on various bills. The appellant has furnished these bills before the Tribunal.

The credit availed on Chartered Accountant services has been denied stating that one of the bills is addressed and intended to the Proprietor Ashok Ramchand HUF and another is in the name of the other units. It is alleged by that the department that Chartered Accountant services relate to other units as well as the individual and therefore the credit is not eligible

A Single Bench consisting of, C S Sulekha Beevi CS, Judicial Member observed that “On perusal, it is seen that these bills are addressed to the appellant-company and not in the name of an individual. After mentioning the name of the company, the name of the Kartha has also been mentioned. Denial of credit alleging that these bills are issued in the name of individual and in the name of other units of the appellant is factually incorrect.”

The Bench also noted that the denial of credit on the ground that appellant has not taken Input Service Distributor registration in respect of Chartered Accountant services cannot sustain.

To Read the full text of the Order CLICK HERE

Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates