2018 (10) TMI 621

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.....f 01.04.2015 as per amended provision, they have paid 100% service Tax on Man Power Supply Service under Reverse Charge Mechanism, on the said amount also they availed the Cenvat Credit. The case of the department is that the appellant being a proprietorship concern was not liable to pay service Tax under Reverse Charge Mechanism; therefore, the Service Tax also paid by them is not available as Cenvat Credit to the appellant. 2. Non appeared on behalf of the appellant shri. Amit Kumar Mishra, Ld. Deputy Commissioner (AR) appearing on behalf of the revenue reiterates the finding of the impugned order. 3. On careful consideration the submission made by the Ld. AR and perusal of record. I find that the Cenvat Credit of Service Tax paid ....

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....ed 12.10.2017 wherein the following order was passed. "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 service tax was paid by the service provider and later recovered from the appellant by indicating the same in the invoice. I find that the amount which the service provider paid whether to be consider as a deposit or service tax for deciding the eligibility of credit has been more or less settled by the Hon'ble Gujarat High Court in Nahar Granites Ltd. (supra), their lordships observed as under: "7. Rule 3 of the Cenvat Credit Rules, 2004 allows a manufacturer or producer of final pr....

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....iginal 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 purchaser of the goods who otherwise fulfilled all conditions tor availing Cenvat credit thereof. 9. Case is substantially similar to one before the Supreme Court in case of MDS Switchgear Ltd. (supra). In the said case, the Tribunal while accepting the department's allegation of inflation of the value of intermediate goods to load the assessable value, observed that if the department was of the opinion that the value of the final product was depressed, it could have charged the original man....