2015 (2) TMI 44

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....Molasses, etc., and availed Cenvat credit benefit. The respondent received service from the foreign service provider in connection with the issue of Foreign Currency Convertible Bonds (FCCB) under the category of "Merchant Banking Services". It was detected by the Central Excise officer of DGCEI, that the respondent had not paid the tax. Upon detection, the respondent paid the tax by TR-6 challan, dated 31-5-2007 of Rs. 25,54,160/-. The respondent availed input service credit on the basis of the said TR-6 challan. A show cause notice, dated 29-5-2008 was issued to disallow the said credit mainly on the ground that the TR-6 challan evidencing payment of tax as a result of an offence case is not eligible document for availing credit under Rul....

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....such challans. 4. On the other hand, the learned counsel on behalf of the respondent submits that they have availed credit on the basis of challan, which is specified document under Rule 9(1)(e) of the Cenvat Credit Rules, 2004. It is submitted that by Notification No. 13/2011-C.E. (N.T.), dated 31-3-2011 clause (bb) was inserted in Rule 9 of the said Rules, 2004, by which "challan" was included for recoverable Cenvat credit on account of fraud or collusion, etc. In the present case, the period of dispute is much before the notification dated 31-3-2011. He further relied upon the decision of the Tribunal in the case of Commissioner of Central Excise, Coimbatore v. M/s. Metafab & Ors., dated 11-4-2005. He further submits that Rule 4A....

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....et aside." According to the Revenue credit of service tax was denied on the basis of documents, which was not issued in the normal course of business transaction. It has strongly relied upon the provision of Rule 9(1)(b) of the Rules, 2004, where the restriction was imposed for taking the credit on supplementary invoice issued not in the normal course of business. It is also contended that Rule 4A of the Service Tax Rules, 1994 stipulated to issue the challan within 14 days from the date of completion of such taxable service. In the present case, the respondent issued challan after 14 days of such taxable services and, therefore, it could not be treated as challan under Rule 9(1)(b) of Rules, 2004. There is no dispute that Rule 9(1)(e) p....