Home Case Index All Cases Service Tax Service Tax + AT Service Tax - 2015 (11) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2015 (11) TMI 351 - AT - Service TaxFraudulent availment of CENVAT Credit - Inference of fraudulent transactions in the matter of payment of commissions to sub-brokers - Held that:- In the instance case as there is no nexus between the input service received by the appellant with the output service provided, therefore , the service received by the appellant from sub-broker cannot be treated as input service and hence service tax credit taken on such input service is also not admissible. Further, appellant suppressed the fact of paying more commission to their sub-broker than the commission earned and the fact that the services rendered by the sub-broker is not an input service for providing output service by them. The facts remained unnoticed if the same would have not been detected by the department. Therefore, the appellant suppressed the vital facts and contravened the provision of Rule 2(l) and 2(p) of the Cenvat Credit Rules, 2004 with intent to evade payment of duty and hence they are also liable for penal action for their such act. In view of above, I agree with the order impugned of the adjudicating authority disallowing the cenvat credit amounting to ₹ 15,75,754/- taken during 2007-08 and ₹ 65,694/- during 2008-09 (upto 8/2010) invoking extended period under Section 73(1) of the Finance Act, 1994 and imposing penalty of ₹ 16,41,448/- upon the appellant under Rule 15 of the Cenvat Credit Rules, 2004 read with Section 78 of the Finance Act, 1994. - no perverseity in the process of reasoning or in the conclusion recorded, warranting appellate interference with the impugned order. - Decided against Assessee.
|