2014 (4) TMI 1140 - AT - Central Excise

Appellant wins appeal on service tax credit eligibility using debit note, based on precedent.

The appeal regarding the appellant's eligibility to claim credit for service tax paid on input services using a debit note from the service provider was ... Credit of service tax paid on the inputs services on the basis of debit note raised by the service provider - Held that:- There are number of decisions allowing such credit. Pharmalab Process Equipments Pvt. Ltd. Vs. CCE, Ahmadabad [2009 (4) TMI 142 - CESTAT AHMEDABAD ], Karur KCP Packaging Pvt. Ltd Vs. CCE, Trichy [2009 (5) TMI 831 - CESTAT CHENNAI], Chemplast Sanmar Ltd. Vs. CCE, Salem [2009 (12) TMI 76 - CESTAT, CHENNAI ] and CCE, Indore Vs. Gwalior Chemicals Industries Ltd. [2012 (5) TMI 352 - CESTAT, NEW DELHI ]. Issues Involved:Whether the appellant can take the credit of service tax paid on the inputs services based on a debit note raised by the service provider.Analysis:1. The judicial member, after hearing both sides, identified the key issue as the appellant's eligibility to claim credit for service tax paid on input services using a debit note from the service provider. The decision in this case was influenced by previous judgments such as Pharmalab Process Equipments Pvt. Ltd. Vs. CCE, Ahmadabad, Karur KCP Packaging Pvt. Ltd Vs. CCE, Trichy, Chemplast Sanmar Ltd. Vs. CCE, Salem, and CCE, Indore Vs. Gwalior Chemicals Industries Ltd.2. The judicial member referenced the decision in the case of Godrej Consumer Products Ltd. vs. CCE, Indore, where the Tribunal had ruled differently. However, the member noted that there were several decisions supporting the appellant's position, as indicated by the judgments mentioned earlier. Consequently, the appeal was disposed of by setting aside the impugned orders.3. The judicial member concluded by stating that the stay petition and the appeal were both disposed of in the manner described above. The decision was dictated and pronounced in the open court, bringing closure to the matter.This detailed analysis of the judgment provides a comprehensive understanding of the issues involved and the rationale behind the decision rendered by the Appellate Tribunal CESTAT, NEW DELHI.