CUSTOMS, EXCISE & SERVICE TAX APPELLATE TRIBUNAL NEW DELHI.

PRINCIPAL BENCH, COURT NO. IV SERVICE TAX APPEAL NO. 52116 OF 2018 [Arising out of the Order-in-Original No. 12/COMMR./ST/BPL-II/2018 dated 24/05/2018 passed by The Principal Commissioner, Customs, Central Excise and Service Tax, Bhopal.]

M/s Environment Planning & ……Appellant Coordination Organization, Paryawaran Parisar, E-5, Arera Colony, Bhopal. Versus The Principal Commissioner, Customs, ….Respondent Central Excise and Service Tax, Bhopal, 35-C, Administrative Area, Arera Hills, Bhopal (M.P.).

APPEARANCE:

Shri Sandeep Mukherjee, Advocate for the appellant.

Shri Rajeev Kapoor, Authorized Representative for the Department CORAM:

HON’BLE DR. MS. RACHNA GUPTA, MEMBER (JUDICIAL) HON’BLE SHRI P.V. SUBBA RAO, MEMBER (TECHNICAL)

FINAL ORDER NO. 50954/2025 DATE OF HEARING : 27.03.2025. DATE OF DECISION : 02.07.2025.

P.V. SUBBA RAO The order dated 24.5.2018 passed by the Principal Commissioner¹ in which he decided the proposals made in the show cause notice dated 16.5.2016² covering the period October 2012 to March 2015 is assailed in this appeal by Environment

1. impugned order

2. SCN Planning & Coordination Organization³ in this appeal. In the impugned order, CENVAT credit of Rs. 2,25,22,846/- was denied and ordered to be recovered with interest and penalties. The facts which lead to the issue of the impugned order are as follows.

2. The appellant was providing taxable services such as ―Architectural and Consulting Engineering Services‖ during the relevant period and were registered with the service tax and were paying service tax and availing CENVAT credit on the inputs and input services. It’s records were audited and it was found that during the relevant period it availed CENVAT credit of Rs. 2,97,42,811/- of which it had proper documents as per Rule 9 of the CENVAT Credit Rules, 2004⁴ only to the extent of Rs. 72,19,965/- and no documents prescribed under Rule 9(2) were produced before audit in respect of Rs.2,97,42,811/-. All the appellant produced were sanction orders and note sheets to show that it had paid certain amounts to their contractors. CENVAT credit can be availed on the strength of the documents mentioned in Rule 9 of the CCR. Relevant portions of Rule 9 of CCR are reproduced below:

RULE 9. Documents and accounts. — (1) The CENVAT credit shall be taken by the manufacturer or the provider of output service or input service distributor, as the case may be, on the basis of any of the following documents, namely :-

(a) an invoice issued by -

3. appellant

4. CCR

(i) a manufacturer or a service provider for clearance of -

(I) inputs or capital goods from his factory or depot or from the premises of the consignment agent of the said manufacturer or from any other premises from where the goods are sold by or on behalf of the said manufacturer;

(II) inputs or capital goods as such;

(ii) an importer;

(iii) an importer from his depot or from the premises of the consignment agent of the said importer if the said depot or the premises, as the case may be, is registered in terms of the provisions of Central Excise Rules, 2002;

(iv) a first stage dealer or a second stage dealer, as the case may be, in terms of the provisions of Central Excise Rules, 2002; or (b) a supplementary invoice, issued by a manufacturer or importer of inputs or capital goods in terms of the provisions of Central Excise Rules, 2002 from his factory or depot or from the premises of the consignment agent of the said manufacturer or importer or from any other premises from where the goods are sold by, or on behalf of, the said manufacturer or importer, in case additional amount of excise duties or additional duty leviable under section 3 of the Customs Tariff Act, has been paid, except where the additional amount of duty became recoverable from the manufacturer or importer of inputs or capital goods on account of any non-levy or short-levy by reason of fraud, collusion or any willful mis-statement or suppression of fac