Appeal Denied: TR-6 Challans Valid for CENVAT Credit

The department appealed against the disallowance of credit for service tax paid by the respondent manufacturer using TR-6 challans. The Tribunal held that TR-6 challans could be considered valid documents for claiming credit under the CENVAT Credit Rules, as the recipient acted as both the payer and recipient of service tax. The appeal lacked merit and was rejected.

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Issues involved: Appeal by the department against disallowance of credit for service tax paid using TR-6 challans by the respondent manufacturer of MS Ingots, MS Rods and Bars.

Summary:
The department appealed against the disallowance of credit for service tax paid by the respondent manufacturer using TR-6 challans. The respondent had availed GTA services and paid service tax during a specific period. A show-cause notice was issued alleging that the document used was not prescribed, leading to a proposal for disallowance of credit and imposition of penalties. The original authority dropped the proceedings based on previous Tribunal decisions. The Commissioner (Appeals) upheld this decision, prompting the department's appeal. The learned SDR argued that the decisions cited by the Commissioner (Appeals) were under challenge, hence not final. Upon review, the Tribunal referenced a case involving a similar situation and held that TR-6 challans could be considered valid documents for claiming credit under the CENVAT Credit Rules. The Tribunal noted that in this case, the recipient acted as both the payer and recipient of service tax, making verification easier. Ultimately, the appeal by the department was found to lack merit and was rejected.

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