Credit cannot be denied due to incorrect description of Service on invoices when Service Tax has been correctly paid

Last updated: 19 December 2023
Quick Summary
The CESTAT Mumbai has ruled that businesses cannot be denied CENVAT credit simply because invoices from service providers contained incorrect descriptions of the services. This decision came after Tata AIG General Insurance Co. Ltd. appealed a denial of credit. The tribunal found that as long as the correct Service Tax was paid by the recipient to avail input services, minor errors in invoice descriptions by the service provider should not invalidate the credit claim. Consequently, the appeals were allowed, and the previous orders denying credit were set aside.

Court :
CESTAT, Mumbai

Brief :
The CESTAT, Mumbai in the case of M/s. Tata AIG General Insurance Co. Ltd. v. Commissioner of Service Tax, Mumbai [Service Tax Appeal No. 85359 of 2017 and 85635 of 2021 dated November 08, 2023] allowed the appeal and held that Credit cannot be denied due to incorrect description of Service on invoices when the recipient who had paid the required Service Tax through the service receiver to avail the input services.

Citation :
Service Tax Appeal No. 85359 of 2017 and 85635 of 2021 dated November 08, 2023

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