Service Tax Credit should not be denied merely because Invoices are Computer generated, which did not have Signatures: CESTAT [Read Order]

In a recent ruling, the Chennai Bench of the Customs, Excise and Service Tax Appellate Tribunal ruled that service tax credit should not be denied merely because invoices are computer generated, which did not have signatures.

The allegation against the appellant, M/s. Cable Vision, was that the appellant was liable to pay Service Tax as per Section 68 of the Finance Act, 1994 read with Rule 6 of the Service Tax Rules, 1994, thereby proposing to demand the same by invoking the larger period of limitation, apart from applicable interest and penalty.

The Adjudicating Authority, confirmed a partial demand thereby allowing a partial CENVAT Credit also, but however, has proceeded to confirm the demand in respect of most of the other part. It is against this order that the present appeal has been filed before the forum.

The Counsel for the appellant argued that the Commissioner has arbitrarily restricted the same to Rs.4 lakhs and it is contended by the Learned Consultant that the findings of the lower authority that certain invoices were not in accordance with the requirement of Rule 4A of the Service Tax Rules, 1994.

Certain invoices were computer generated, which did not have the signature. Various Benches of the CESTAT have taken a consistent view that in respect of computer generated invoices, signature was not required and consequently, have directed the authorities not to deny the input Service Tax credit.

In M/s. Mammon Concast Pvt. Ltd. v. Commr. of CGST, Cus. & C.Ex., Alwar and M/s. Poornam Info Vision v. Commissioner of C.T. & C.Ex., Cochin, the Tribunal held that merely because the invoices are computer generated, which did not have signatures, service tax credit should not be denied.

The Coram comprising P Dinesha, Judicial Member and M Ajit Kumar, Technical Member noted that “Following the ratio of the above orders, we are of the view that the input Service Tax credit should not be denied merely because the invoices are computer generated, which did not have signatures. Consequently, to this extent, the impugned order is set aside.”

To Read the full text of the Order CLICK HERE

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