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2018 (11) TMI 846 - AT - Service TaxCENVAT Credit of service tax paid - outstanding dues - restriction under Rule 4(7) - Department observed that the Appellant is not making full payment of the value of the input services received by them from their contractor, and retaining the part payment of service provider on account of performance guarantee - Rule 4 (7) of Cenvat Credit - Held that:- Rule 4 (7) of CCR stands amended w.e.f. 1st April, 2011 and after the said amendment taking of Cenvat Credit is not linked with the payment of invoice to the service provider but it is linked with the invoice/bill/challan of input service. Though the grievance of the Department seems that irrespective, the payment was still to be made within 3 months, but we observe that since the respondent had paid the entire Service Tax on which they were liable for taking the credit i.e. on the amount as mentioned in the Bill/invoice, they were entitled to avail credit. The circular No.122/03/2010- ST dated 30th April, 2010 further clarifies the situation that the Service Tax paid is allowed as credit. Credit allowed - appeal dismissed - decided against Revenue.
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