Sirs,
1. Service tax was paid by the service provider after getting demand notice from the Department. After making payment, they claimed re-imbursement of service tax from the service receiver company by issuing a 'supplementary invoice'. what do you think on the eligibility of CENVAT Credit (on this input service) to the service receiver company (based on rule 9 of CCR 2004)?
2. will the situation change if no SCN was issued on the service provider; only an O.C was served?
thanks and regards.
Service Receiver's Eligibility for CENVAT Credit Hinges on Absence of SCN Alleging Fraud or Misrepresentation A service provider paid service tax following a demand notice and sought reimbursement from the service receiver via a supplementary invoice. The eligibility of CENVAT credit for the service receiver depends on whether the tax was recoverable due to fraud or misrepresentation. If no Show Cause Notice (SCN) alleging such issues was issued, credit can be availed. However, if an SCN alleging suppression to evade duty is issued, credit is not available. The discussion highlights that adjudication delays can prolong the resolution, impacting the availability of credit. (AI Summary)
TaxTMI 
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TaxTMI 
