Cenvat Credit cannot be Disallowed under CCR when Assessee Regularly availed Cenvat Credit of Input Service in Books of Account: CESTAT

The Hyderabad bench of CESTAT ruled that Cenvat credit cannot be disallowed under CCR, 2002 when the appellant regularly availed input service tax credit in their books of accounts. Sri Sai Communications, engaged in providing Cable TV services, faced scrutiny over delayed filing of ST3 returns and utilization of Cenvat credit. \r

Despite allegations and extended limitation periods invoked, the tribunal found the appellant's maintenance of proper electronic books and regular audit compliance satisfactory. It upheld the appellant's right to Cenvat credit, noting adherence to Rule 4 and Rule 9 of CCR, 2004 in taking credit within the stipulated timeframe. \r

The CESTAT overturned the Commissioner's decision, setting aside demands for disallowed credit and additional service tax, with proper accounting and audit practices supporting their appeal. Shri T. Ankamma Rao represented the Appellant, while Shri B. Sangameshwar Rao appeared for the Respondent.