CENVAT credit reporting omissions require documentary verification, not automatic denial where input services and tax payment are established.

CENVAT credit should not be denied solely because its utilisation for service-tax payment was not reported in ST-3 returns where the receipt of input services, tax payment, and nexus with output services are established through acceptable business records. The discussion notes that the CENVAT scheme prevents cascading taxes and should not be defeated by hyper-technical reporting deficiencies. However, the claimant must produce documents substantiating both availment and utilisation of the credit. The credit claim requires fresh examination of the documents under the principles governing CENVAT credit admissibility.

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Issues: Whether CENVAT credit could be denied solely because its utilisation for payment of service tax was not reported in ST-3 returns, despite the asserted receipt of input services and payment of tax.

Analysis: The nature and nexus of the input services with the output services were not disputed. The denial rested on the absence of particulars in the ST-3 returns and supporting documents substantiating the credit utilisation. The CENVAT scheme is intended to prevent cascading of taxes, and credit cannot be denied on hyper-technical grounds where receipt of input services and tax payment are established through acceptable business records. The assessee must, however, produce documents establishing the claimed availment and utilisation of credit.

Conclusion: The credit claim requires fresh examination on the documents produced by the assessee, applying the principles governing admissibility of CENVAT credit.

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