GENERAL MANAGER, BSNL Vs. CCE, LUCKNOW

JUDGEMENT

(1.) THE dispute in the present appeal relates to the service tax of Rs. 2,10,138/ - which the appellant has availed as credit based upon the invoices issued by service provider. Revenue's contention is that the credit was availed in the month of March, 2007 whereas the service provider has paid the service tax in April and May, 2007.

(2.) FOR a better appreciation of the reasoning adopted by Commissioner (Appeals), I re -produce the relevant paragraph from the impugned order.

(3.) IN terms of the provision of Rule 4(7) of the Cenvat Credit Rules 2004, the Cenvat credit in respect of input service shall be allowed, on or after the day on which payment is made of the value of input service and the service tax paid or payable as is indicted in the invoice. As such, for the purpose of availing Cenvat credit, there is no requirement that the service tax should have been deposited by the service provider before the availment of the credit. If the service provider has not deposited the service tax with the department on due date, to Revenue's remedy lies at the end of the service provider for recovery of the service tax along with interest.