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2019 (5) TMI 1093 - AT - Central ExciseCENVAT credit - input services - service tax not paid in accordance with what is indicated in the Invoice - it was alleged that appellant has not paid the value of input services and the service tax paid as indicated in the invoice/bills has paid a reduced amount as was evident from the records - Rule 4(7) of CCR 2004 - HELD THAT:- It is not in dispute that the appellant has paid less amount towards the services availed by them by reducing the consideration of the services. They did not pay the tax on full invoice value. However, service provider paid service tax on the full invoice value and the appellant has taken credit of the entire amount of service tax paid. There is an excess payment of service tax by the service provider considering the reduced payment made for the services. This excess payment could have been claimed as refund by the service provider but they have already passed on this burden to the appellants herein. The appellants herein have borne the full burden of the excess service tax paid by them. They have also taken credit of the excess service tax. An alternative could have been for the appellant to seek refund of the excess amount of service tax paid as the persons who bore the burden of excess service tax. From a plain reading of Rule 4(7), it does not appear that Rule 4(7) provides for a proportionate reduction of CENVAT Credit where the value of services rendered is reduced subsequently but service tax was discharged on the original amount and borne by the service recipient - This is consistent with the circular of the Board No. 877/15/2008-CX, dated 17.11.2008 in which the Board has clarified that where higher duty than the due is paid due to subsequent reduction in prices, credit as per invoice is available to the assessee. This is also consisted with similar circular regarding credit of service tax in Board’s Circular No. 122/3/2010-ST, dt.30.04.2010. Both these circulars were, of course, issued prior to Rule 4(7) was amended w.e.f. 01.04.2011. The appellant is entitled to CENVAT Credit of the service tax paid by them as indicated in the invoices - appeal allowed - decided in favor of appellant.
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