cenvat credit

[Dalia Felix]

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.

 

AI Summary

CENVAT credit eligibility on supplementary invoices depends on absence of suppression allegations; alleged evasion bars credit.
CENVAT credit on supplementary invoices is generally available to the service recipient except where the amount is recoverable due to non levy, non payment or short levy caused by fraud, collusion, wilful mis statement or suppression of facts indicating intent to evade service tax. If the department issues only a communication without allegations the recipient may claim credit; if a show cause notice alleges suppression with intent to evade, credit is normally disallowed. Admissible credit is not subject to a time limit, though adjudication and appeals may delay final resolution.