TMI Blog2016 (11) TMI 21X X X X Extracts X X X X X X X X Extracts X X X X ..... tainable. We, therefore, hold that the said Show Cause Notice, so far as, relates to denial of Cenvat credit to the appellant, imposition of penalty on appellant, proposal for imposition of penalty on its Authorized Signatory & proposal of demanding interest from the appellant is unsustainable. We, therefore, modify the impugned Order-in-Original to the extent that the demand confirmed in respect of Cenvat credit of ₹ 3,32,76,600/- is set aside, order for recovery of interest on the said demand is set aside, imposition of penalties set aside - appeal allowed - decided in favor of appellant. - APPEAL No. E/52221 & 52222/2014-EX[DB] - Final Order No. 71003-71004/2016 - Dated:- 3-10-2016 - Mr. Anil Choudhary, Member (Judicial) And Mr. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vat credit of Service Tax paid as stated in the said invoices on Manpower or Supply Agency Services . On investigation it came to the knowledge of Revenue that BVI had not made the payment of Service Tax stated on the invoices issued to the appellant. Investigation was carried out and a Show Cause Notice was issued to the appellant who was recipient of service, as to why, Cenvat credit amounting to ₹ 3,32,76,600/- wrongly availed during the period from April, 2007 to March, 2009 should not be recovered from them under the provisions of Rule 14 of Cenvat Credit Rules, 2004 read with Section 11A(4) of Central Excise Act, 1944. There was a proposal to impose personal penalty on Mr. Bharat Bhushan Sharma, Authorized Signatory of the appe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s of Rule 4A of Service Tax Rules, 1994 and this is how the document was in conformity with the provisions of Sub-rule 1 of Rule 9 of Cenvat Credit Rules, 2004. They have further submitted that as provided under Sub-rule 7 of Rule of Cenvat Credit Rules, 2004 which provides that credit on input services can be availed once payment has been made on the full value of the service including Service Tax and this is how they were eligible for said Cenvat credit. They have further submitted that it is practically not feasible for any service recipient to ask each and every service provider to show the proof of the tax deposited by it with the Government and that non-deposit of tax by the service provider cannot be a ground to deny credit to the se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lied on the ruling by Hon ble High Court of Allahabad in the case of Commissioner of Central Excise Service Tax Versus Juhi Alloys Ltd. reported at 2014 (302) E.L.T. 487 (Allahabad). In the said case law the Hon ble High Court of Allahabad has ruled that it would be impractical to require the assessee to go behind the records maintained by the first stage dealer and that assessee if acts with all reasonable diligence in its dealing with the first stage dealer within the meaning of Rule 9(3) of Cenvat Credit Rules, 2004 obligation is limited to that. He has further elaborated that in the said case law the Hon ble High Court ruled that once it is demonstrated that reasonable steps have been taken as required within the meaning of Rule 9(3) ..... X X X X Extracts X X X X X X X X Extracts X X X X
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