2017 (11) TMI 759

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....tral Excise Tariff Act, 1944. They had availed CENVAT credit of service tax paid by the service provider in relation to the input service viz. Man-power supply service which were used in or in relation to the manufacture of finished goods in the factory during the period July 2012 to December 2013. Alleging that as per Notification 30/2012-ST dated 20.06.2012, the appellant was required to pay 75% of the Service tax amount as service recipient whereas, the service provider was required to pay 25% of the service tax liability, instead, since the service provider had paid the entire service tax amount(100%), therefore, the appellant are not eligible to avail credit of the service tax paid by the service provider, consequently, demand notice w....

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....7) of the Cenvat Credit Rules, 2004, the Ld. Advocate has submitted that the proviso itself prescribes the condition to avail credit of the service tax paid on reverse charge mechanism mentioning that only after the service tax amount paid or payable is indicated in an invoice or bill in accordance with Rule 9 of the Cenvat Credit Rules, 2004, then only credit could be admissible. Since in the present case, the entire amount of service tax paid has been indicated in the invoice, therefore, they are eligible to take credit of the service tax paid. 5. I find that the appellant though required to pay 75% of the service tax liability, on receiving the man-power supply service from the service provider, however, initially the entire amount of....

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....of a final product. Such goods were duty paid. Rules 3 and 4 of the Cenvat Credit Rules, 2004, thus would enable him to avail the Cenvat credit. It is a different thing that the supplier of the goods to the respondent paid excise duty on such product under mistaken belief. In law as declared by the Supreme Court in case of Collector of Central Excise, Patna v. Tata Iron and Steel Co. Ltd. (supra), no duty was payable on such product. Strictly speaking therefore, such amount deposited by the original manufacturer would not partake the character of excise duty. However, when the department did not dispute the classification of such manufacturer, accepted the declarations and duties, Cenvat credit on such duty cannot be declined to the purchas....