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2015 (2) TMI 44 - AT - Service TaxDenial of CENVAT Credit - Merchant Banking Services - whether or not TR-6 challan evidencing payment of tax after detection of offence case is eligible document for availing Cenvat credit under Rule 9(1)(b) of the Rules, 2004. - Held that:- Respondent issued challan after 14 days of such taxable services and, therefore, it could not be treated as challan under Rule 9(1)(b) of Rules, 2004. There is no dispute that Rule 9(1)(e) permitted to avail credit on the basis of a challan. A challan evidencing payment of Service Tax by the person liable to pay Service Tax under sub-clauses (iii), (iv), (v) and (vii) of clause (d) of sub-rule (1) of Rule 2 of the Service Tax Rules, 1994. - So, it is apparent that after insertion of clause (bb) in Rule 9(1) Notification No. 13/2011 supra, credit can be denied on a challan availed on account of fraud, collusion, etc. Tribunal in the case of M/s. Metafab (2005 (4) TMI 564 - CESTAT CHENNAI) while dealing with Notification No. 6/97-C.E., wherein Rule 57E of the erstwhile Rules was amended, whereby fraud, collusion, suppression of facts, etc., were incorporated as ground for denying the benefit of Rule 57E to a manufacturer of final product receiving inputs on which initially duty had not been paid or had been short-paid on account of fraud, collusion, suppression of facts, etc. In that case, The Tribunal has observed that the said amendment was not applicable prior to the date of Notification. Similarly, in the present case, the denial of credit on the basis of a challan for the reason of fraud, collusion, suppression of facts, etc., would not be applicable prior to the notification, dated 31-3-2011. Hence, I am unable to accept the contention of the learned Authorised Representative. Hence, in the present case, the respondent availed credit on the basis of the challan as specified under Rule 9(1)(e) which cannot be denied. - Decided against Revenue.
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