2010 (2) TMI 285 - AT - Service Tax

Cenvat Credit supplementary invoice service tax recovered from the input service provider and the allegation of suppression has been established in respect of the input service provider the department seeks to disallow the credit to the appellants who are the recipients of the input service Held that - the Rule 9(1)(b) relates to supplementary invoices issued by a manufacturer or the importer of inputs or capital goods and relates to additional amount of excise duty or additional duty leviable under Section 3 of the Customs Act. In the said Rule there is no mention of additional amount of Service tax. As such there is no warrant in law to invoke such provisions of Rule 9(1)(b) in respect of the present case credit is allowed

Summary

The Appellate Tribunal CESTAT, Chennai ruled in favor of the appellant, stating that Rule 9(1)(b) of the Cenvat Credit Rules cannot be invoked for disallowing credit of additional tax paid by the input service provider. The demand was deemed unsustainable as the rule does not cover additional service tax, as per a previous Tribunal decision. The impugned order was set aside, and the appeal was allowed.