Input credit taken on debit note instead of invoice

[ranganath shenoy]

The audit team of the C.ex dept has made an observation that the cenvat credit for input services has been taken based on debit note raised by the service provider though they contain all the details .Is it possible to obatin a invoice now and set right the lapse

[Rama Krishana]

A debit note if contains all the particulars as per Rule 4A, is a valid document for availing cenvat credit of service tax paid on input service. But, to avoid litigation, you may obtain Invoices.

[Rakesh Chitkara]

Yes. It is a curative deficiency. Obtain an invoice and confirmatory letter. Fact is that you have actually paid the tax. Taking credit is your substantive right and can not be taken away by mere procedural deficiencies. Don't yield to pressure. There are numerous CESTAT judgments favouring your position. If matter comes to SCN stage, these can be cited in the reply.

[DEV KUMAR KOTHARI]

Bill, invoice, debit note issued by servic eprovider are documents to prove rendering of serivce, charges, and service tax paid thereon. However, a standard document is always preferable as people can work with ease on standard documents. So better obtain an invoice with reference to the Dr. note. so taht invoice is nto treated an altogether new piece of evidence but as a supporting documetn for the Dr. note already submitted/ produce/ or relied on.

AI Summary

Cenvat credit validity when debit note contains prescribed particulars; obtain invoice to cure procedural deficiency and support credit claim.
If a debit note contains the prescribed particulars it is a valid document for availing Cenvat credit of service tax on input services; taxpayers can cure procedural lapses by obtaining an invoice and a confirmatory letter referencing the debit note so the invoice serves as supporting evidence, and procedural deficiencies alone should not negate the substantive right to credit where tax was actually paid.