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2019 (5) TMI 468 - AT - Service TaxCENVAT Credit - non-contravened of Rules as made under Cenvat Credit Rules, 2004 - penalty - HELD THAT:- The idea of introducing cenvat credit had a preconceived motive of reducing cascading effects of indirect taxes, as a result of which, the ultimate consumers will have final products and services at a much lower price. The idea was conceived by the Government in the form of introducing Cenvat Credit Fules, 2004. The basic conditions of allowing credit was that the person, who is willing to take such credit, should have had paid the taxes to the Government Exchequer. The appellant’s firm in order to provide services to M/s Century Pulp & Paper for procurement of EPCG Licenses from DGFT, Kolkata, had availed the services of M/s Sakshi Tradelink Pvt. Ltd. represented by Mr.Rajesh Singh. The document filed by the ld.Counsel that M/s Sakshi Tradelink Pvt. Ltd. is regularly complying with all the statutory liabilities before various Department and their name is also portal all the Ministries of Company Affairs, which shows that they have filed their Annual Returns and Statements upto 31st March, 2018. It is also showed their registered office and other details. Copies of the Bank statement of the Appellant Firm reflect payments made to M/s Sakshi Tradelink Pvt. Ltd. Hon’ble Allahabad High Court in the case of THE COMMISSIONER OF CENTRAL EXCISE CUSTOMS & SERVICE TAX VERSUS M/S. JUHI ALLOYS LTD., ANIL KUMAR SHUKLA [2014 (1) TMI 1475 - ALLAHABAD HIGH COURT], have dismissed the Departmental Appeal, where similar issue was raised by the Department in respect of the invoices, on which cenvat credit was availed. Penalty - HELD THAT:- Since the appellants have paid the entire amount of demand along with interest, which is also almost equal to the amount of demand, no penalties should be imposed - the penalties are set aside. Appeal allowed.
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