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2019 (9) TMI 175

..... e credit is not a valid document as the amount was not paid by BPS to the Government and it amounted to suppression of facts with intent to evade payment of duty by the service provider namely BPS - HELD THAT:- In the present case, the service provider though collected the service tax from the appellant has failed to deposit with the Government. The appellant has made arrangements to adjust their dues pending with the service provider and paying the service tax on behalf of the service provider. The letter dated 21.12.2016 issued by the service provider (BPS) to appellant would establish that they have paid the service tax on behalf of BPS after adjusting all the pending dues between parties. Thus, it is very much clear from the facts that .....

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..... rvice tax during the years 2013 - 14, 2014 - 15, 2015 - 16 and 2016 - 17. When the fact of non-payment was pointed out, the appellant vide letter dated 3.4.2017 submitted the workings and challans dated 9.2.2017. It was stated by the appellant that instead of reversing the credit or paying the amount in their name, they have paid an amount of ₹ 6,26,494/- towards service tax and ₹ 2,60,782/- towards interest on behalf of BPS. The department was of the view that as per Rule 9(1)(bb) of CENVAT Credit Rules, 2004, the challan for availing the credit is not a valid document as the amount was not paid by BPS to the Government and it amounted to suppression of facts with intent to evade payment of duty by the service provider namely B .....

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..... e payment was deposited with the Government only after taking credit. She prayed that the impugned order may be set aside and the appeal be allowed. 3. On behalf of the department, ld. AR Shri S. Govindarajan appeared and argued the matter. He much stressed upon Rule 9(1)(bb) of CENVAT Credit Rules and explained that when the credit has been availed on the invoices for which the service provider has evaded payment of service tax by suppression of facts, the service recipient is not eligible to take credit. In the present case, it is clear that the service provider has not paid the service tax to the Government since the appellants have sought to pay the amount at a later stage. Thus, while taking credit the amount was not deposited to the G .....

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