Case Law Details
Commissioner of CGST Vs Vodafone Idea Limited (CESTAT Mumbai)
CESTAT Mumbai held that CENVAT Credit is duly available against debit notes that contains substantially the same information as prescribed in rule 9 of CENVAT Credit Rules, 2004
Facts-
M/s Spice Communications Ltd (since taken over by the respondent herein, M/s Idea Cellular Ltd) came under audit scrutiny for the said years and, based on their objection, proceedings were initiated for recovery of credit of 4,05,31,447 and 7,23,54,855 availed in April 2008 – March 2009 and April 2009 – February 2010 respectively. It was taken note that the said credit had been taken against ‘debit notes’ issued by M/s GTL Infrastructure Ltd to them in which charges for electricity, diesel and rent had been adjusted in accordance with the terms of ‘infrastructure provision agreement’ dated 8th May 2006 between them and the provider. It was also held that the CENVAT Credit Rules, 2004 does not incorporate diesel as eligible input and that electricity is not a taxable service under Finance Act, 1994 to enable such availment.
The objection of the audit in this case culminated in the issue of show cause notice that was ultimately dropped by the adjudicating authority leading to this appeal.
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