2016 (5) TMI 1046 - AT - Central Excise

Tribunal grants appeal, allows Cenvat credit based on compliant debit notes.

The Tribunal allowed the appeal, overturning the Commissioner's decision to reject the appellant's claim for Cenvat credit based on debit notes issued by ... Entitlement for Cenvat credit - debit notes issued by the service provider in respect of service - Ld. Commissioner raised some shortcomings in the debit notes denying the credit - Held that:- whatever informations required in terms of Rule 4A in the document, more or less all the informations are appearing in the debit notes, therefore the debit notes can be accepted for allowing Cenvat Credit. Therefore, this Tribunal has taken a consistent view that Cenvat credit can be allowed in the debit note if it contains the informations as required under Rule 4A of Service Tax Rule, 1994. The various decisions cited by the appellant are squarely applicable. - Decided in favour of appellant Issues involved:1. Entitlement to Cenvat credit based on debit notes issued by the service provider.Detailed Analysis:Issue 1: Entitlement to Cenvat credit based on debit notes issued by the service providerThe appeal challenged the Order-in-Appeal where the Commissioner rejected the appellant's claim for Cenvat credit based on debit notes issued by the service provider. The Commissioner cited reasons for denial, including the absence of the service provider's address on the debit notes, the form of the notes not being a challan, and lack of information regarding the description, classification, and value of taxable services. The appellant contended that the debit notes contained all necessary information as per Rule 4A of the Service Tax Rules, 1994. The appellant's counsel argued that the service provider's address was clearly mentioned on the letterhead, along with details of the service value and service tax amount. The counsel relied on various judgments where Cenvat credit was allowed based on debit notes, emphasizing that the Tribunal had consistently permitted such credits if the notes complied with Rule 4A requirements.Analysis:The Tribunal, after considering both parties' submissions, referred to Rule 9 of the Cenvat Credit Rules, which specifies the documents required for claiming Cenvat credit for input services. These documents include invoices, bills, or challans issued by the input service provider as per Rule 4A of the Service Tax Rules. The challan should contain specific information such as the provider's name, address, registration number, recipient's details, service description, value, service tax amount, and tax registration number. The Tribunal noted that the debit notes in question contained most, if not all, of the necessary information as per Rule 4A. Therefore, the Tribunal concluded that the debit notes could be accepted for allowing Cenvat credit. Citing previous decisions, the Tribunal affirmed that Cenvat credit could be granted based on debit notes meeting Rule 4A requirements. Consequently, the Tribunal set aside the impugned order and allowed the appeal in favor of the appellant.This detailed analysis of the judgment showcases the legal intricacies involved in determining the entitlement to Cenvat credit based on debit notes issued by the service provider, highlighting the importance of compliance with Rule 4A requirements and the precedents supporting such claims.