2016 (8) TMI 881

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....ER (TECHNICAL) For the Petitioner : Ms. Neha Garg, DR For the Respondent : Ms. Reena Khair, Advocate ORDER PER B. RAVICHANDRAN: The appeal by the Revenue is against the order dated 14.05.2008 of Commissioner (A) Delhi-I. The respondents are engaged in manufacture of footwear and shoes. They were availing Cenvat Credit on various input services like franchisee services, commercial ag....

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....egarding respondent availing credit before the payment of service tax. It was also contested that the burden of proving the correctness of credit taken is on the assessee in terms of Sub Rule (6) of Rule 9. In the present case the verification report brought out instances of violation of Sub Rule (7) of Rule 4 to the effect that credit has been availed even before the payment of value of services ....

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.... availing credit on input services is very clear in terms of Sub Rule (7) and Rule 4 of Cenvat Credit Rules 2004, the Cenvat Credit in respect of input services shall be allowed on or after the day which payment is made of the value of input service and the service tax paid or payable as is indicated in invoice, the bill or as the case may be, challan referred to in Rule 9. In view of this clear l....

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....ter the date on which they made payment of value for such services and also service tax has been paid to the provider of services before that date. This obligation has clearly been stipulated under Sub Rule (6) of Rule 9. Accordingly, we find that it is necessary to establish the payment of value as well as tax before availing the credit by supporting documentary evidence, as we have seen at least....