2013 (12) TMI 1618 - AT - Service Tax

Appellant granted Cenvat credit for steel strips in packing; Tribunal rules in favor.

The appellant's Cenvat credit on duty paid for steel strips used in strapping and packing was initially denied due to invoices being in customers' names. ... - Issues involved: Denial of Cenvat credit on duty paid on steel strips for payment of service tax due to invoices not in the name of the appellant.Summary:The appellant's Cenvat credit of &8377; 2,61,979/- on duty paid for steel strips used in strapping and packing, was denied for March 2007 as the invoices were in customers' names. The appellant argued that a similar issue was resolved in their favor by the Commissioner (Appeals) for a subsequent period. The Revenue contended that the packing premises were not the appellant's, so the earlier decision was not applicable. The Tribunal noted that the steel strip invoices were in customers' names as they did the packing work, but the strips were used by the appellant for packing. The Revenue's argument about including material value for service tax payment was considered. Rule 9 of Cenvat Credit Rules was cited, stating that the recipient's address is not essential for credit eligibility. The Tribunal found that the appellant satisfied requirements by showing the strips were used for services, duty was paid, and ruled in favor of the appellant, treating the issue as a procedural omission. The appeal was allowed, granting credit to the appellant.