TaxTMI 
TaxTMI 
2025 (7) TMI 150
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....chitectural and Consulting Engineering Services" during the relevant period and were registered with the service tax and were paying service tax and availing CENVAT credit on the inputs and input services. It's records were audited and it was found that during the relevant period it availed CENVAT credit of Rs. 2,97,42,811/- of which it had proper documents as per Rule 9 of the CENVAT Credit Rules, 2004 CCR only to the extent of Rs. 72,19,965/- and no documents prescribed under Rule 9(2) were produced before audit in respect of Rs.2,97,42,811/-. All the appellant produced were sanction orders and note sheets to show that it had paid certain amounts to their contractors. CENVAT credit can be availed on the strength of the documents mentioned in Rule 9 of the CCR. Relevant portions of Rule 9 of CCR are reproduced below: RULE 9. Documents and accounts. - (1) The CENVAT credit shall be taken by the manufacturer or the provider of output service or input service distributor, as the case may be, on the basis of any of the following documents, namely :- (a) an invoice issued by - (i) a manufacturer or a service provider for clearance of - (I) inputs or ....
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....ioner of Customs in-charge of the Customs airport, (e) a challan evidencing payment of service tax, by the service recipient as the person liable to pay service tax; or (f) an invoice, a bill or challan issued by a provider of input service on or after the 10th day of September,2004; or (g) an invoice, bill or challan issued by an input service distributor under Rule 4A of the Service Tax Rules,1994: (2) No CENVAT credit under sub-rule (1) shall be taken unless all the particulars as prescribed under the Central Excise Rules, 2002 or the Service Tax Rules, 1994, as the case may be, are contained in the said document: Provided that if the said document does not contain all the particulars but contains the details of duty or service tax payable, description of the goods or taxable service, assessable value, Central Excise or Service tax registration number of the person issuing the invoice, as the case may be, name and address of the factory or warehouse or premises of first or second stage dealers or provider of output service, and the Deputy Commissioner of Central Excise or the Assistant Commissioner of Central Excise, as the case may b....
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....paying documents during the audit and even thereafter and hence had an intention to avail ineligible CENVAT credit. (iii) Therefore, extended period of limitation was correctly invoked. Findings 7. We have considered the submissions advanced by both sides and perused the records. The undisputed factual position is that the appellant was a registered service provider and was paying service tax and availing CENVAT credit. It has also been filing Service Tax Returns. 8. During audit, it was discovered that the appellant had availed CENVAT credit and when the documents on the strength of which the CENVAT credit was availed were called for, the appellant produced some documents like note sheets and Sanction orders which were obviously not duty paying documents. 9. CENVAT credit is a method by which the assessee can avail credit of duty paid by its suppliers and service providers and utilize it to pay its own service tax. Thus, every rupee of CENVAT credit availed is a rupee less paid in cash as Service Tax. Therefore, it is essential that CENVAT credit is properly taken and for this purpose, CENVAT Credit Rules were framed. They enable the assessee to avail CENVAT c....
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....y providing a copy of the service tax registration certificate of the supplier. We cannot agree with this submission because what is curable or condonable and what does not quantify as a duty paying document to avail CENVAT credit is clear and specific in the proviso to Rule 9(2) of the CCR. If the invoice lacks the essential details indicated in the proviso to Rule 9(2), then such a document is not a valid document for availing CENVAT credit. Just as a cheque without the account number cannot be taken as a valid cheque even if the person who signed it has, indeed, a bank account, even if the person who issued the invoice had a service tax registration, the invoice will not become a valid one in the absence of this essential details in it. 14. With respect to the invoices where the details of the service tax paid was missing, it is the submission of the learned counsel that challans showing payment of service tax have been enclosed. We find in the first place that the invoice itself must contain the details of service tax paid as per the proviso to Rule 9(2). The reason is evident. The assessee can only take credit of service tax paid or excise duty paid. If credit is taken on t....