CENVAT credit on debit notes upheld where service tax was paid and Rule 9 particulars were available.

CENVAT credit on service tax paid to a service provider cannot be denied merely because the credit was taken on debit notes, where the notes contain the particulars required under Rule 9 of the CENVAT Credit Rules, 2004. The Tribunal noted that the service provider issued debit notes for job work charges and paid service tax on them, and held that there was no rule-based ground to reject credit on that basis or on the allegation that no services were provided. The denial of credit was therefore unsustainable.

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Issues: Whether CENVAT credit of service tax paid by the service provider could be denied on the ground that the credit was taken on debit notes and on the allegation that no services were provided to the appellant.

Analysis: The service provider raised debit notes for the job work charges and paid service tax thereon. The Tribunal found no provision in the CENVAT Credit Rules, 2004 to deny credit merely because service tax had been paid to the service provider. It also found that the debit notes contained the particulars required under Rule 9 of the CENVAT Credit Rules, 2004 for availing credit.

Conclusion: The denial of CENVAT credit was unsustainable and the credit could not be denied to the appellant.

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