2026 (8) TMI 16

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....in the year 2015-16. On the ground that the service provider had not discharged the service liability from 2010-11 to 2014-15. On the ground that they have discharged the Service Tax liability with interest and penalty after investigation was taken up during the February 2016, the Show Cause Notice was issued to the appellant that the Cenvat Credit taken by them based on the supplementary invoice is ineligible in terms of Rule 9 (1)(bb) of CCR 2004. The demand of Rs. 94,61,626/- was made on 14.09.2017 by way of the Show Cause Notice. After due process, the lower authorities have confirmed the demand. Therefore, the appellants are before the Tribunal. 2. The Ld. Counsel appearing on behalf of the appellant submits that in the entire Show ....

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....e above Rule it can be seen that the embargo to the take Cenvat Credit in respect of any short payment or non-payment on account of suppression etc. would be applicable where the tax in question has become 'recoverable'. This means that the demand of Service Tax on account of suppression / misstatement should have been confirmed after the Show Cause Notice is issued and no further appeal should be pending before the higher authorities. Even if the confirmed amount is being contested at the higher level by the service provider, it cannot be held as recoverable demand. In the present case there is nothing to show that even a Show Cause Notice was issued against the service provider, let alone the existence of "recoverable demand". Therefore, ....

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....vider has remitted the service tax along with interest as due. The department entertained a view that the credit availed by the appellant is ineligible in terms of Rule 9(1)(bb) of Cenvat Credit Rules, 2004 and consequently, issued show cause notice dated 162-2017 demanding Cenvat credit of Rs. 25,54,522/- along with interest and also proposed penalty. After following the due process, the original authority confirmed the demand along with interest and imposed equal penalty. Aggrieved by the said order, appellant filed appeal before the Commissioner (A), and Commissioner (A) upheld the Order-in-Original and rejected the appeal filed by the appellant. Hence, the present appeal. 6. After considering the submissions of both the parties....