The adjudicating authority demanded denial of CENVAT credit to ...

Full CENVAT credit allowed despite discounts or retention, overturns adjudicating authority's 10% denial.

Case Laws     Service Tax

September 16, 2024

The adjudicating authority demanded denial of CENVAT credit to the extent of 10% of the invoice value, as the assessee-appellant was not paying the full amount. However, the Tribunal held that in case of any amount retained or discounted after invoices were issued, the credit need not be changed, and full credit of service tax paid to the service provider is eligible. Relying on the ratio laid down in previous Tribunal decisions involving identical issues, the impugned order was set aside, and the appeal filed by the assessee-appellant was allowed. The appeal was disposed of accordingly.

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