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2016 (8) TMI 895 - AT - Service TaxImposition of penalty - Rule 15(2) of CENVAT Credit Rules 2004 - manufacture of pistons, pistons rings etc., - receive management consultancy services - payment of management fee and sole selling commission – CENVAT credit on input services – delay in deposit of service tax by service provider – Held that: - the appellant who has paid the service tax to the service provider is entitled to avail the credit of the same without finding whether such service tax paid by him to the service provider stands further deposited by him to the exchequer. It is neither possible nor practical for any service recipient to verify the fact of payment of service tax by the service provider. Remedy of the Revenue lies at the hands of the service provider and not at the hands of the service recipient. Further, the provisions of Rule 15(2) cannot be invoked as the issue was of credit on input services as held in the case Davangere Sugar Company Vs CCE Bangalore II 2011 (2) TMI 553 - CESTAT, BANGALORE – no penalty imposed – decided in favor of appellant.
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