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2022 (6) TMI 820 - AT - Service TaxCENVAT Credit - duty paying invoices - credit availed on the strength of challan by which the service tax was deposited under the reverse charge mechanism on pointing out by audit - Rule 9(1)(bb) of Cenvat Credit Rules, 2004 - HELD THAT:- The appellant have paid the service tax on reverse charge mechanism and taken the credit on the challans by which the service tax was paid. The department’s case is that the appellant is not entitled to credit on such challans in terms of Rule 9(1)(bb) of Cenvat Credit Rules. The appellant’s eligibility of credit is not on the basis of Rule 9(1)(bb) which is on the basis of Rule 9(1)(e) which provides that Cenvat Credit on challan which is evidence of payment of service tax on reverse charge mechanism therefore, the entire case of the department is on wrong footing. On plain reading of Rule 9(1)(e) of Cenvat Credit Rules, 2004, the appellant is entitled for Cenvat credit on the challan whereby, they have deposited the service tax on reverse charge mechanism - Credit allowed - appeal allowed - decided in favor of appellant.
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