CENVAT credit on service tax for deposit insurance premium cannot be denied merely because invoices were issued later.

CENVAT credit on service tax paid for deposit insurance premium was treated as admissible where the record showed tax payment before credit was availed, even though the invoices were issued later. The dispute turned on timing of availment, and the evidence did not support the Revenue's claim that credit had been taken without payment of tax on the underlying service. On that basis, credit could not be denied merely because the invoices post-dated the tax remittance, and the demand for reversal was held unsustainable.

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Issues: Whether CENVAT credit of service tax paid on deposit insurance premium was admissible when the tax had been paid before the credit was availed, despite the Revenue's objection that the invoices were issued later.

Analysis: The invoices and remittance details showed that the service tax had been paid prior to the dates of the relevant invoices. The dispute was confined to the timing of availment, and the record did not support the Revenue's allegation that the credit was taken without payment of tax on the underlying service. In these circumstances, the assessee's availment of credit after payment of service tax could not be disallowed on the ground urged by the Revenue.

Conclusion: The demand for reversal of CENVAT credit was not sustainable, and the order dropping the demand was upheld in favour of the assessee.

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