https://www.taxtmi.com/caselaws?id=774150 CESTAT Kolkata allowed the appeal of a television serial production house against denial of CENVAT credit worth Rs. 13,07,441. The appellant had availed credit on services received from vendors later found to be bogus shell companies. The Tribunal held that an innocent service recipient acting in good faith cannot be penalized for supplier's fraud, especially when service tax was paid to suppliers and credit was used to discharge output service tax liability. The Department's case relied solely on uncorroborated statements not recorded under proper legal procedures under Section 9D of Central Excise Act, 1944. No evidence established appellant's involvement or knowledge of fraudulent activities. The order was set aside with no penalty or interest imposed. en-us Thu, 03 Jul 2025 00:00:00 +0530 Thu, 03 Jul 2025 13:06:18 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=774150 CESTAT Kolkata allowed the appeal of a television serial production house against denial of CENVAT credit worth Rs. 13,07,441. The appellant had availed credit on services received from vendors later found to be bogus shell companies. The Tribunal held that an innocent service recipient acting in good faith cannot be penalized for supplier's fraud, especially when service tax was paid to suppliers and credit was used to discharge output service tax liability. The Department's case relied solely on uncorroborated statements not recorded under proper legal procedures under Section 9D of Central Excise Act, 1944. No evidence established appellant's involvement or knowledge of fraudulent activities. The order was set aside with no penalty or interest imposed. Case-Laws Service Tax Thu, 03 Jul 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=774150