The Customs, Excise, and Service Tax Appellate Tribunal (CESTAT), Kolkata presided by Mr. P. K. Choudhary, Member (Judicial) has held that debit notes are valid documents for availing Cenvat credit of Service Tax.
During the audit of the records of the appellant, M/s. Visa Resources India Limited, the department disallowed availing of Cenvat credit of Service Tax on debit notes issued by Visa Infrastructure Ltd. for ‘business support’ and ‘management consultancy services’ alleging that debit notes are not valid documents for availing of Cenvat credit of Service Tax.
The Tribunal observed that as per clause (f) of Rule 9 of the Cenvat Credit Rules, 2004 an invoice issued by a provider of input service is a valid document for availing of Cenvat credit. The Tribunal further observed that the heading of the document as seen from sample copies attached with the appeal paper book though is nomenclature as debit notes but they contain all the disclosures as required in a tax invoice as per Rule 4A of the Service Tax Rules, 1994.
Thus the Tribunal while allowing the appeal has held that “I am of the view that Cenvat credit cannot be denied to the Appellants and thus the appeal succeeds to that extent and the demand is quashed”.
CA. Mr. Satyanarayan Gupta and Mr. S. S. Chattopadhyay appeared on behalf of the appellant and respondent respectively.
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