2022 (4) TMI 518 - AT - Service Tax

CENVAT Credit - duty paying documents - credit availed on the strength of debit notes issued by the service provider - HELD THAT - This issue is no longer res-integra as the same has been decided in various judgements cited by the appellant - reliance can be placed in the case of AD-MANUM PACKAGING PVT. LTD. VERSUS COMMISSIONER OF C. EX., INDORE 2017 (4) TMI 209 - CESTAT NEW DELHI where it was held that Cenvat credit should not be denied simply on the basis that they are debit notes and are not documents specified under Rule 9(1) of the CCR, 2004. Thus, the appellant are entitled for the cenvat credit on debit note. It is further noted that the debit note has contained all the information such as Name and address of the service provider and service recipient, the registration number of the service provider, the amount of service tax charged to the appellant, description of service etc., Therefore, all the details which is otherwise required to be mentioned in the valid document for cenvat credit are appearing in the debit note, for this reason also the cenvat credit cannot be denied to the appellant. Appeal allowed - decided in favor of appellant.

Summary

Issues:
Whether the appellant is entitled to cenvat credit based on debit notes issued by the service provider.

Analysis:
The appellant argued that cenvat credit on debit notes has been allowed in various judgments, citing cases like CCE Jaipur vs Bharti Hexacom Ltd. and others. The appellant's counsel emphasized that the debit notes contain all necessary details as per Rule 9, making them valid for availing cenvat credit. On the other hand, the Authorized Representative for the Revenue reiterated the findings of the impugned order and referred to judgments like Panwar Trading Corporation and others to support their position.

The Tribunal noted that the key issue was whether the assessee could claim credit based on debit notes. Citing the case of Ad-Manum Packaging Pvt. Ltd., the Tribunal highlighted that as long as debit notes contain all required information under Rule 9(1) of the Cenvat Credit Rules, they should be considered equivalent to invoices for claiming cenvat credit. The Tribunal also referenced judgments like Jaguar & Co. and Shree Cement Ltd., where it was held that denial of cenvat credit based on debit notes was not sustainable if all necessary details were present.

Based on the precedents and the content of the debit notes in question, the Tribunal concluded that the appellant was entitled to cenvat credit on the debit notes. The Tribunal emphasized that the debit notes included essential information such as service provider and recipient details, service tax amount, and service description, fulfilling the requirements of a valid document for cenvat credit. Therefore, the impugned order was set aside, and the appeal was allowed.

In summary, the Tribunal upheld the appellant's right to claim cenvat credit based on debit notes, as long as the necessary details were provided in the notes as per Rule 9. The decision was supported by previous judgments and the content of the specific debit notes under consideration, ensuring compliance with the legal requirements for availing cenvat credit.