Tribunal allows Cenvat Credit for past service tax payment on supplementary invoices

The Tribunal upheld the Ld. Commissioner (Appeals)'s decision, allowing the respondent to claim Cenvat Credit for a supplementary invoice issued by the service provider for past service tax payment. The Tribunal determined that Rule 9(1)(b) of Cenvat Credit Rules 2004 did not restrict availing Cenvat Credit for such invoices related to input services before the 2011 amendment. The Revenue's appeal was dismissed, and the cross-objection was disposed of accordingly.

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Issues:
1. Entitlement to avail Cenvat Credit on a supplementary invoice for service tax payment.

Analysis:
The appeal challenged the Order-in-Appeal that set aside the Order-in-Original and allowed the respondent's appeal regarding Cenvat Credit. The main issue was whether the respondent could claim Cenvat Credit for a supplementary invoice issued by the service provider for past service tax payment. The adjudicating authority initially denied the credit based on Rule 9(1)(b) of Cenvat Credit Rules 2004, citing reasons like suppression of facts or fraud. However, the Ld. Commissioner (Appeals) allowed the credit, stating that the restriction under Rule 9(1)(b) did not apply to service tax payments, unlike inputs and capital goods.

The Assistant Commissioner for the Revenue argued that Rule 9(1)(b) was the only provision for allowing Cenvat Credit on a supplementary invoice, and it should apply to service tax as well. On the contrary, the respondent's counsel highlighted that Rule 9(1)(b) restricted Cenvat Credit only for inputs or capital goods during the period in question (July 2005 to January 2009). The counsel pointed out that the specific amendment inserting Sub-clause (bb) in Rule 9(1) for service tax came into effect from 1.4.2011. The counsel referenced previous Tribunal decisions supporting this interpretation.

The Tribunal, after considering both sides' arguments, noted that Rule 9(1)(b) of Cenvat Credit Rules 2004 did not impose any restrictions on availing Cenvat Credit for supplementary invoices related to input services before the amendment on 1.4.2011. The Tribunal cited previous decisions to support this view and upheld the Ld. Commissioner (Appeals)'s order, dismissing the Revenue's appeal. The cross-objection was also disposed of accordingly.

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