CENVAT - Invoice not in name of applicant - although it is four years since issuance of SCN, applicant could not bring corrected invoices - pre-deposit ordered
THE applicant, a service provider, availed CENVAT credit of an amount of Rs. 68,026/- on the basis of invoices issued by M/s Zee Turner Ltd.
However, the invoices were in the name of M/s Hemraj Cable Network and not in the applicant's name and, therefore, the Revenue denied the credit and imposed penalties etc.
As the lower appellate authority upheld the order, the applicant is before the CESTAT and submits that non-mentioning their name in the invoice is a mistake on the part of the service provider and that they had paid the service provider. That, when they had approached the service provider they were advised to go to the distributor Pratik Satellite Services but to no avail. It is submitted that they have with them a certificate from the Tehsildar mentioning that there is no company with the name M/s Hemraj Cable Network in their area. And since they have already paid 50% of the service tax amount as pre-deposit for hearing the case before the Commissioner (Appeals), stay may be granted.
The Revenue representative submitted that the invoices are not in the name of the applicant and hence there is no way that the credit can be allowed. Further, even though it is four years since the SCN was issued, the applicant has not been able to get the invoices corrected and so the demand is to be upheld.
The Bench observed -
"5. The fact that CENVAT credit of Rs. 68,026/- taken based upon the invoices which are not in the name of the applicant is not disputed. The Show Cause Notice was issued in April 2009 and through medium of the Show Cause Notice the applicant was made aware of the discrepancy. In the last four years they could not bring the corrected invoices. In view of this the applicant has not made out a case for waiver of pre-deposit of the disputed amount. The applicant is directed to deposit remaining 50% of the amount within four weeks from today. On deposit of the amount, there shall be waiver of pre-deposit of penalties till disposal of the appeal…."