Self-issued invoice can support Cenvat credit where service tax was paid from the Cenvat account and liability is undisputed

Where service tax is validly paid by a deemed service provider from the Cenvat account and the tax payment and credit eligibility are undisputed, a self-issued invoice may be treated as a valid document for availing credit. In that setting, a TR-6 challan is not required. The document therefore recognises that, on these facts, the assessee could rely on its own invoice to support credit and was entitled to the requested waiver of dues and interim relief.

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Issues: Whether, in the circumstances where the assessee was both a recipient of service and a deemed service provider, the invoice raised by it on itself for service tax paid from the Cenvat account could be treated as a valid document for availing credit, and whether TR-6 challan was necessary.

Analysis: The assessee had paid the service tax as a deemed service provider from its Cenvat account, and the tax payment as well as the underlying eligibility to credit were not in dispute. In that situation, the requirement of preparing a TR-6 challan did not arise. Since the assessee was also the recipient of input services, the self-issued invoice showing the service tax paid from the Cenvat account could qualify as a document for taking credit. The objection that credit could be taken only on a prescribed document in the form of a TR-6 challan was therefore not accepted.

Conclusion: The self-issued invoice was held to be sufficient for availing credit, and the assessee was held entitled to waiver of dues.

Final Conclusion: The order recognised entitlement to credit on the basis of the self-generated invoice in the facts of the case and granted the requested interim relief.

Ratio Decidendi: Where service tax has been validly paid by a deemed service provider from the Cenvat account and the liability and credit entitlement are undisputed, a self-issued invoice may serve as a valid basis for credit and a TR-6 challan is not .

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