TaxTMI 
TaxTMI 
2019 (6) TMI 898
X X X X Extracts X X X X
X X X X Extracts X X X X
...., 1985. During the period May 2008 to March 2009, they received the services from overseas service providers and made payments for such services amounting to Rs. 853.66 lakhs, but failed to discharge Service Tax of Rs. 104.54 lakhs. However, on being pointed out in July 2009, they paid the entire amount of Service Tax and availed credit of the same. Alleging that the Appellant had contravened the provisions of Rule 9(1)(b) of CENVAT Credit Rules, 2004, demand notice was issued to them on 05.06.2012 for recovery of the credit with interest and penalty. On adjudication, the demand was confirmed with interest and penalty. Hence, the present appeal. 3. At the outset, the learned Advocate for the Appellant, advancing a two-fold argument, has ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....y the Revenue in July 2009, the Appellants have discharged Service Tax for the services received from overseas clients under Section 66A of Finance Act, 1994. Consequently, they availed CENVAT Credit of the service tax amount so paid considering the same as an input service. Revenue does not dispute the said service as 'input service' but it is their contention that since the Service Tax was recovered from the Appellant, which was initially not paid by the Appellant due to wilful mis-statement or suppression of facts, therefore, the credit of the amount so paid is not admissible to them in view of Rule 9(1)(b) of CENVAT Credit Rules, 2004. We find that the applicability of Rule 9(1)(b) prior to the amendment to the said provision reads as u....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ow that CENVAT credit can be taken by the manufacturer or provider of output service or input service distributor based on the documents referred to in clauses (a) to (g). Clause (a) of sub-rule (1) of Rule 9, inter alia, allows a manufacturer, (which is, what the assessee is) to claim CENVAT credit based on an invoice, which could be issued by a manufacturer or an importer or even a first stage dealer or a second stage dealer, as the case may be, in terms of the provisions of the Central Excise Rules, 2002 (in short 'the 2002 Rules'). 13.3 The invoices issued by a manufacturer for clearance of inputs or capital goods from his factory or depot or from the premises of his consignment agent or from any other premises from where the g....
X X X X Extracts X X X X
X X X X Extracts X X X X
....(b) of sub-rule (1) of Rule 9 of 2004 CC Rules has no application to invoice or challan issued by a service provider. 13.7 It is clear, on a plain reading of Rule 9(1) of 2004 CC Rules, that the Explanation appended to Clause (b) of sub-rule (1) of Rule 9 only seeks to clarify that supplementary invoice would also include a challan or any other similar document, which evidences payment of "additional amount of additional duty" leviable under Section 3 of the Customs Tariff Act, issued by a manufacturer, importer of inputs or capital goods. 13.8 Therefore, the documents included in Clauses (e), (f) and (g) of sub-rule (1) of Rule 9 of 2004 CC Rules, would not be governed by the Explanation, as it is sought to be argued by t....