2017 (12) TMI 718

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....ongly availed during the period July 2012 to January 2013 and demanding the same under Rule 14 of the Cenvat Credit Rules 2004 and also appropriated the same which was paid by the appellant vide challan dated 26.03.2014 and also imposed penalty under Rule 15 of the Cenvat Credit Rules and interest under Section 75. Briefly the facts of the present case are that the appellants are registered under the category of Clearing and Forwarding Agency, Manpower Recruitment Agency and Goods Transportation Agency and are availing the cenvat credit of service tax paid on input services. While auditing the records of the assessee for the period 2011-12 to 2012-13, the Internal Audit party observed that the assessee had been availing irregular cenvat cre....

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....fter following the due process of law, the Commissioner has disallowed the credit and also imposed penalty under Rule 15(3). Aggrieved by the said order, appellant has filed the present appeal. 2. Heard both the parties and perused the records. 3. Learned counsel for the appellant submitted that the impugned order is not sustainable in law as the same has been passed without properly considering the facts and the law on the point. He further submitted that the credit of Rs. 28,61,045/- (Rupees Twenty Eight Lakhs Sixty One Thousand and Forty Five only) availed on invoices not bearing the Service Tax Registration No., the learned counsel before the Commissioner has proved that the service provider were duly registered with the Departmen....

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....fter paying the same is wrong and illegal. He further submitted that when the service provider has paid the entire service tax i.e. 100% to the Government and once the entire service tax has been paid by the service provider to the Government which was availed as cenvat credit then the non-payment of 75% by the appellant cannot be a reason to take the credit. Learned counsel further submitted that the appellant again had paid the said credit of Rs. 8,07,065/- (Rupees Eight Lakhs Seven Thousand and Sixty Five only) on being pointed out by the audit vide Challan No.02682 dated 26.03.2014. He further submitted that once the entire service tax is paid there is no question of asking the appellant to reverse the cenvat credit of 75% of the servic....