CENVAT Credit availed on basis of debit notes can’t be denied when the eligibility of credit is not disputed: CESTAT

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Cenvat Credit availed on basis of debit notes can't be denied

Case Details: M/s. Gates Unitta India Company Pvt. Ltd. vs. Commissioner of GST & Central Excise - [2021] 130 taxmann.com 342 (Chennai - CESTAT)

Judiciary and Counsel Details

    • Ms. Sulekha Beevi C.S., Judicial Member and P. Venkata Subba Rao, Technical Member
    • K. Pawan Pahwa and Manoj Misra, Advs. for the Appellant. Ms. Sridevi Taritla for the Respondent

Facts of the Case

The appellant was engaged in manufacture of goods and availed CENVAT credit on inputs and input services availed. It took input service credit on the basis of debit notes and department issued notice alleging that credit was not allowed on basis of debit notes and denied the credit availed. It filed appeal against the same.

CESTAT Held

The honorable CESTAT observed that though Rule 9(1) of CENVAT Credit Rules, 2004 does not mention debit note as a document on which credit can be availed but in case all necessary particulars are mentioned then the credit cannot be denied only because credit is taken on basis of the document which is a debit note. Moreover, in case the department did not dispute the payment of service tax on the amounts raised in the debit notes, the credit can’t be denied. Therefore, the denial of credit on the ground that the document on which credit was availed was a debit note was not legal or proper and liable to be set aside.

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