2019 (9) TMI 175

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....BPS Engineering (BPS for short) for rendering welding, fabrication service etc. to the appellants. The invoices charged service tax at full rate. On verification through ACES, it was found that though the appellant had taken credit of service tax based on the invoices raised by BPS, the service provider that is BPS had not paid the service tax during the years 2013 - 14, 2014 - 15, 2015 - 16 and 2016 - 17. When the fact of non-payment was pointed out, the appellant vide letter dated 3.4.2017 submitted the workings and challans dated 9.2.2017. It was stated by the appellant that instead of reversing the credit or paying the amount in their name, they have paid an amount of Rs. 6,26,494/- towards service tax and Rs. 2,60,782/- towards interes....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....that Rule 9(1)(bb) of CENVAT Credit Rules, 2004 will apply only if the credit is taken on supplementary invoices. In the present case, credit has been taken on the original invoice issued by the service provider. Merely because the appellant deposited the service tax amount on behalf of BPS, the department has assumed that the payment was deposited with the Government only after taking credit. She prayed that the impugned order may be set aside and the appeal be allowed. 3. On behalf of the department, ld. AR Shri S. Govindarajan appeared and argued the matter. He much stressed upon Rule 9(1)(bb) of CENVAT Credit Rules and explained that when the credit has been availed on the invoices for which the service provider has evaded payment of....