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2015 (7) TMI 966 - AT - Service TaxDenial of CENVAT Credit - input services - non payment of service tax by the provider of serivces to the revenue - Invoices received by the appellant showed that they had paid rent on equipment and on this rent on equipment, service provider had charged service tax which was paid by them - Held that:- If service tax has been paid by the service provider and service receiver is eligible for the credit, it is not the responsibility of the service receiver to examine the correctness of service tax paid by the service provider. That amounts to assessment by the service receiver of the service received by him. It is not at all the responsibility cast on him. There are several decisions taking a view that examination of correctness of tax paid is not the responsibility of the service receiver and department cannot deny the credit of service tax on this ground. In the case of Ultratech Cement Ltd Vs CCE Nagpur [2010 (12) TMI 90 - CESTAT, MUMBAI], it was held that departmental authorities have no jurisdiction over service recipient, cannot sit in judgment over the correctness of the tax paid and it is not proper to deny the assessee CENVAT credit of service tax paid by agencies engaged by them. In the case of Treads direct Ltd., Vs CCE Calicut [2013 (3) TMI 476 - CESTAT BANGALORE], it was held that the question as to whether input is dutiable cannot be agitated at the end of manufacturer of final product. - there is absolutely no case for the Revenue to deny the CENVAT credit and accordingly the impugned order is set aside - Decided in favour of assessee.
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