Cenvat credit for lease rent service tax cannot be denied once registration and tax payment are verified despite documentary defects.

Cenvat credit on service tax paid for lease rent could not be denied merely for documentary when the service provider's registration and tax collection were later verified. Once the Estate Office confirmation established that service tax had been charged from the appellant and deposited with the Revenue, the objection under Rule 9(2) of the Cenvat Credit Rules, 2004 on absence or inadequacy of documents no longer survived. The appellant was entitled to credit, and the denial was not sustainable.

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Issues: Whether cenvat credit of service tax paid on lease rent could be denied for want of proper documents under Rule 9(2) of the Cenvat Credit Rules, 2004 when the service provider's registration and tax collection were subsequently verified.

Analysis: The documentary deficiency relied upon by the Revenue stood cured by the communication from the Estate Office, UT, Chandigarh, which confirmed its registration with the service tax authorities and that service tax had been charged from the appellant on lease rent and deposited with the Revenue. Once the tax payment on the leased premises was verified, the basis for denial of credit on the ground of absence or inadequacy of documents no longer survived.

Conclusion: The appellant was entitled to avail cenvat credit of the service tax paid on lease rent and the denial of credit was not sustainable.

Final Conclusion: The impugned order was set aside and the appeal was allowed with consequential relief.

Ratio Decidendi: Where the service provider's registration and collection of service tax are verified, cenvat credit cannot be denied merely on the ground of earlier documentary deficiencies if the tax payment on the input service is established.

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