Case Law Details
Srini Link Vs C.C.E & S.T. (CESTAT Ahmedabad)
Cenvat credit cannot be denied for service tax payment as a recipient instead of as a service provider
CESTAT find that the cenvat credit was denied to the appellant on the ground that the service tax was paid by the appellant as a recipient whereas, it was supposed to be paid by the service provider. In this regard, I find that there is no specific condition in the Cenvat Credit Rules that the cenvat credit can be allowed only when service tax is paid by the service provider. The fact is not under dispute that the appellant was received the services which was suffered service tax, the government exchequer has received the service tax amount. In such case the compliance of the Cenvat Credit Rules stand fulfilled therefore, on the ground that the appellant have paid the service tax therefore the credit is not available is absolutely incorrect in my considered view.
Service tax payment challan is a valid document for availing cenvat credit
As regard the contention of the department that the challan through which the appellant have paid the service tax is not a valid document for availing the cenvat credit. This issue is no longer res-integra as in the various judgments, some of which are cited by the appellant. It is clearly held that the challan through which the service tax was paid is a valid document for availing the cenvat credit therefore, for this reason also the cenvat credit cannot be denied. Accordingly, the department’s allegation clearly fails on both the grounds. The judgment relied upon by the appellant directly support their case on both the grounds therefore, in my considered view the appellant have rightly availed the cenvat credit in respect of service tax paid by them on receipt and use of service.
Please become a Premium member. If you are already a Premium member, login here to access the full content.
