2016 (10) TMI 1201 - AT - Central Excise

CENVAT Credit - service tax on remuneration paid to director - reverse charge mechanism - Held that - Proposition of the counsel appears to be in accordance with law, in view of specific enactment for levy of service tax on reverse charge mechanism - such service tax is payable under reverse charge mechanism with effect from 1.7.2012. Therefore, CENVAT credit cannot be denied. Once service tax is paid, in absence of any adverse finding as to no deposit thereof into the treasury, there cannot be denial of CENVAT credit. Appeal allowed - decided in favor of appellant.

Summary

The Appellate Tribunal CESTAT CHENNAI allowed the appeals stating that CENVAT credit cannot be denied on remuneration paid to directors under reverse charge mechanism with effect from 1.7.2012.