TaxTMI 
TaxTMI 
Whether cenvat credit is available on the service tax deposited under reverse charge mechanism when the lapse in payment is indicated by service tax audit team But Before issue of SCN ?
This case will fall under Cenvate Rule 2004Rule 9 (1)e.
Cenvat credit of service tax deposited under reverse charge machanism
22 Jun 2016 
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Cenvat credit availability for reverse-charge service tax: recipient may claim credit based on payment challan despite supplier irregularities.
Cenvat credit is available to a service recipient for service tax paid under the reverse charge mechanism where the recipient has paid the tax and possesses the payment challan; entitlement depends on the recipient's payment and documentary proof rather than on the issuance of a show cause notice, and supplier fraud or misrepresentation provisions do not automatically deny the recipient's credit when the recipient has independently paid. (AI Summary)
Cenvat credit is available to a service recipient for service tax paid under the reverse charge mechanism where the recipient has paid the tax and possesses the payment challan; entitlement depends on the recipient's payment and documentary proof rather than on the issuance of a show cause notice, and supplier fraud or misrepresentation provisions do not automatically deny the recipient's credit when the recipient has independently paid. (AI Summary)