2019 (7) TMI 488

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....oticed that the appellant has availed the Cenvat Credit of Service Tax paid on the compensation granted to the service provider i.e. M/s. Furnace Fabrica (India) Limited, who under the contract dated 30 March, 2008 were providing services for building and bringing into commercial operations services as that of fabrication, installation errection and commissioning services for various plants & machineries. As per the contract, the appellant was to provide certain space and facility to the service provider for commencing and carrying out the work. However, due to certain circumstances, the said space and facility could not be provided within the period prescribed in the agreement as was executed between the two. Resultantly, the aforesaid com....

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..... MDS Switchgtear Ltd. reported in 2008 (229) ELT 485 (S.C.) 3. CCE, Chennai-I vs. CEGAT, Chennai reported in 2006 (202) ELT 753 (Mad.) 4. It is also impressed upon that the assessment cannot be reopened at the end of the buyer of the recipient of the goods/services. Ld. Counsel relied upon the case law in the case of Hindustan Unilever Ltd. v. Commissioner of CGST & CE., Kolkata South reported in 2018 - TIOL - 2490 - CESTAT-Kol. & Thysennkrupp Electrical Steel India Pvt. Ltd. v. CCE & Cus., Nashik reported in 2011 (273) ELT 132 (Tri. - Mumbai). Finally, the show cause notice is alleged to be barred by time, as the Department was not entitled to invoke the extended period of limitation. Order, accordingly, is prayed to be set as....

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.... of duty paid by the supplier. Similar is the situation in the present case as far as the impugned compensation is concerned. The Tribunal in a recent decision in the case of CCE, Delhi-II vs. Welspring Universal reported in 2018 (359) ELT 635 has decided the issue of admissibility of Cenvat Credit once the duty/tax has been paid by the supplier of the goods/the service provider in favour of the assessee. We have no reason to differ from the afore discussed settled proposition of law. Accordingly, we hold that the Cenvat Credit cannot be denied once the duty stands paid. We are further also of the opinion that the assessment cannot be re-opened at the end of the recipient of the goods / services. Compensation herein is otherwise opined to b....