2024 (6) TMI 1437 - AT - Central Excise

CENVAT Credit availed of Service Tax paid by the service provider - denial on the ground that the debit note against which they have taken the credit is not a proper document to avail CENVAT Credit in terms of Rule 9(1) of the CENVAT Credit Rules 2004 - also no services have been provided by the service provider to the appellant - HELD THAT - There is no dispute to the facts of the case that the service provider has raised debit notes on the appellant for providing the service and Service Tax has been paid thereon. There is no provision to deny CENVAT Credit to the appellant in the CENVAT Credit Rules 2004 if Service Tax is paid by them to the service provider. Moreover the debit notes issued by the service provider contains all the details required in terms of Rule 9 of the CENVAT Credit Rules 2004 to avail CENVAT Credit. In these set of facts we hold that the CENVAT Credit cannot be denied to the appellant. There are no merit in the impugned order and accordingly the same is set aside - appeal allowed.

Summary

In the case before the Appellate Tribunal CESTAT Kolkata, the appellant challenged the denial of CENVAT Credit on Service Tax paid via debit notes issued by their job worker, M/s. Tata Steel Processing and Distribution Limited. The core issue was whether debit notes qualify as valid documents under Rule 9(1) of the CENVAT Credit Rules, 2004, for availing CENVAT Credit, especially when no services were allegedly provided. The Tribunal found that the debit notes contained all necessary details as per Rule 9 and that Service Tax had indeed been paid. It concluded that there was no legal basis to deny the CENVAT Credit. Consequently, the Tribunal set aside the impugned order, allowing the appeal with consequential relief.