By TIOL News Service

AHMEDABAD, MAY 09, 2014: THE issue involved in these proceedings is that appellant has taken CENVAT credit of the Service Tax paid by the service provider but Revenue has taken the objection that payment of such bills was made at discounted value.

Against the order of the Commissioner(A), the appellant is before the CESTAT.

It is submitted that Service Tax has not been paid to the service provider proportionate to the reduced bill amount and, therefore, the appellant is entitled to avail entire service tax paid on the invoices as admissible CENVAT credit. Reliance is also placed on the CBEC Circular No. 877/15/2008-CX dated 17.11.2008 and Circular No. 122/3/2010-ST dated 30.4.2010 .

The Revenue representative defended the orders passed by the lower authorities.

The Bench extracted the contents of the Board Circulars referred by the appellant and observed that no evidence has been brought on record by the Revenue to indicate that reduced service tax has been paid by the appellant to the service provider.

And concluded - "On the basis of facts available on records, credit of full service tax shown to have been paid on the duty paying document will be admissible to the appellant in view of the CBEC Circulars relied upon by the appellant."

The appeal was allowed with consequential relief.

(See 2014-TIOL-739-CESTAT-AHM)