Consult Us For Construction
Service Tax Case Law - Eligibility to avail CENVAT Credit
M/s THE KARUR VYSYA BANK LTD Vs CCE & ST, TRICHY
Service Tax - Denial of credit on the ground that assessee had not furnished the cenvat return or abstract or details of the cenvat credit availed - duty paying documents in terms of Rule 9 of CCR, 2004 – eligibility to Cenvat Credit on the e-statement of National Payments Corporation of India (NPCI) – denial of cenvat credit for want of original invoices
HELD - The assessee as a Member Bank, has entered into an agreement with NPCI for intermediary network switching and other support services for accounting and settlement of transactions made on the ATM and integrating the same with the accounts of the customers, in the books of the member banks - In nutshell, the agreement provides for smooth operation of member banks regarding transaction through credit or debit cards or such other instruments, to the customers who perform transactions through ATMs for specified services - From a perusal of the statement issued by NPCI, it is a self-contained document incorporating all the mandatory requirements of proviso to Rule 4A and in any case, NPCI is not a private body just to ignore its statement; as to the nature of service, there is an agreement in place.
It is not the case of the Revenue that NPCI has not filed its ST-3 return or that there was any contravention by NPCI whereby a doubt is entertained as to the transactions, to deny cenvat credit availed by the assessee on its payment to NPCI - it is the settled legal the position of law that even photocopies of invoices are the valid document - Denial of cenvat credit on the photocopy of the invoices is not justified and hence the same is set aside - Appeal is partly allowed.