2014 (10) TMI 728 - AT - Service Tax

Denial of CENVAT Credit - absence of registration number of service provider - Held that - There is no dispute about raising of the invoices by the service provider and giving all the particulars including the fact of payment of service tax. When the same is taken into consideration along with S.T. 3 return filed by the service provider, it leads to the inevitable conclusion that service provider has paid the service tax. In any case, I find that there is no dispute about the above fact and only reason for denial of credit is absence of registration number of service provider. I find that said defect is a rectifiable defect and the appellant having produced S.T. 3 return of the service provider which bears his registration, is sufficient to meet the objection of the Revenue. Accordingly, I find no reason to deny the credit to the appellant. Impugned order is set aside - Decided in favour of assessee.

Summary

Issues: Denial of Cenvat credit due to absence of service provider's registration number on invoices.

Analysis:
1. The appellant's Cenvat credit was denied because the invoices from the service provider did not contain the service provider's registration number. The appellant submitted the S.T. 3 return filed by the service provider, indicating payment of Service Tax, during adjudication. The original authority acknowledged the payment but did not grant credit, suspecting the tax might have been paid for services to other clients.

2. The tribunal noted that the invoices issued by the service provider contained all necessary details, including service tax payment information. Considering the S.T. 3 return provided by the service provider, it was evident that the tax had been paid. The tribunal found that the denial of credit was solely based on the absence of the service provider's registration number on the invoices. This was deemed a rectifiable defect, especially since the appellant had furnished the S.T. 3 return showing the service provider's registration number, satisfying the revenue's objection.

3. The tribunal concluded that the appellant had met the requirements for availing the credit, as the service provider had indeed paid the service tax. As a result, the tribunal set aside the impugned order and allowed the appeal. Both the stay petition and the appeal were disposed of accordingly.