2010 (12) TMI 99 - AT - Service Tax

Cenvat Credit - duty paying document - whether TR-6 challan evidencing payment of service tax on an input service could be accepted as proper document for the purpose of availment of CENVAT credit of such tax by an output service provider or a manufacturer of excisable goods during the period prior to 7.6.2005 - Held that - On a perusal of the Tribunals orders in the cases of Centaur Pharmaceuticals P. Ltd. (2008 - TMI - 32153 - CESTAT MUMBAI) Essel Pro-Pack Ltd. etc. (2007 - TMI - 2426 - CESTAT MUMBAI) I find that TR-6 challans evidencing payment of service tax were held to be proper documents for manufacturers of excisable goods or providers of output services to avail CENVAT credit on the input services even for periods prior to 7.6.2005

Summary

Issues:
Whether TR-6 challan can be accepted as a proper document for availing CENVAT credit prior to 7.6.2005.

Analysis:
The appeal before the Appellate Tribunal CESTAT, Mumbai involved the question of whether TR-6 challan could be considered a valid document for availing CENVAT credit on input services by output service providers or manufacturers of excisable goods before 7.6.2005. The lower appellate authority had allowed CENVAT credit based on TR-6 challan, citing the Tribunal's decision in CCE, Goa vs. Essel Pro-Pack Ltd. The department challenged this decision, mentioning appeals filed against the Essel Pro-Pack Ltd. case and other similar cases. However, the Tribunal noted that there was no information about any stay orders from the High Courts against the Tribunal's decisions. The Tribunal found that TR-6 challans were considered proper documents for availing CENVAT credit even before 7.6.2005 in previous cases like Centaur Pharmaceuticals P. Ltd. and Essel Pro-Pack Ltd. Since there was no stay on these decisions, the lower appellate authority's reliance on them was deemed appropriate.

The Tribunal's analysis focused on the precedents set by its previous decisions in cases like Centaur Pharmaceuticals P. Ltd. and Essel Pro-Pack Ltd., where TR-6 challans were accepted as valid documents for claiming CENVAT credit on input services before 7.6.2005. The Tribunal emphasized that none of its decisions had been stayed by any High Court, indicating the validity and applicability of the previous rulings. Therefore, the Tribunal upheld the lower appellate authority's decision to allow CENVAT credit based on TR-6 challans, dismissing the Revenue's appeal.

In conclusion, the Appellate Tribunal CESTAT, Mumbai upheld the lower appellate authority's decision to accept TR-6 challan as a proper document for availing CENVAT credit on input services even before 7.6.2005. The Tribunal relied on its previous judgments where TR-6 challans were considered valid for such purposes, noting the absence of any stay orders against these decisions. Consequently, the appeal by the Revenue was dismissed, affirming the decision in favor of the respondent.