2017 (2) TMI 1165 - AT - Central Excise

100% EOU - Refund claim - Rule 5 of CCR - job-work - the tax was raised against the assessee by way of debit notes instead of invoice, whether the credit should be denied on this basis? - Held that - the identical question was the subject matter of the Tribunal s decision in the case of Shree Cement Ltd. Vs. CCE Jaipur 2013 (3) TMI 79 - CESTAT NEW DELHI , Wherein it was observed that substance is more important that the format and the denial of credit on the basis of the debit notes, instead of invoices, cannot be appreciated and Upheld - Appeal allowed - decided in favor of appellant.

Summary

Issues:
1. Availment of credit based on debit notes instead of invoices.
2. Eligibility of credit for service tax paid by job worker.

Analysis:
1. The appellant, a 100% EOU engaged in manufacturing and exporting printed books, claimed a refund of service tax paid to a job worker for book binding. The revenue objected to the credit claim, arguing that debit notes cannot be equated with invoices for availing credit. However, the Tribunal, citing a previous case, emphasized the importance of substance over format, ruling that denial of credit based on debit notes is unjustified.

2. The second issue revolved around the objection raised by the revenue regarding the job worker's payment of service tax. Despite the objection, it was acknowledged that the service tax was indeed paid by the job worker. The Tribunal clarified that the credit of tax "paid" is permissible, irrespective of whether it was "payable." Consequently, the appellant's claim for credit of service tax paid by the job worker was deemed legitimate, leading to the reversal of the impugned orders and the allowance of both appeals with appropriate relief granted to the appellant.