TMI Blog2023 (2) TMI 1093X X X X Extracts X X X X X X X X Extracts X X X X ..... ve dealers had paid service tax on the nature of services described in the invoices issued to the appellant; that payment of service tax by such dealers have been accepted by the service tax authorities having jurisdiction over their business premises. Since, the service tax paid by such dealers was availed as Cenvat credit by the appellant, availment of such credit is in conformity with the Cenvat statute. In an identical case, Cenvat credit was denied by the Department, holding that the invoices issued by the automotive dealers are false/fraudulent/invalid, since no service of the description contained therein was rendered by the auto dealer. The dispute was resolved by the co-ordinate Bench of the Tribunal in the case of M/S. CHOLAMAN ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pellant got itself registered with the service tax department as a service provider as well as a service recipient, in terms of the Finance Act, 1994. As per industry practice, automotive dealers, being the first point of contact with the buyers of the automotive car/vehicle, interact with the buyer and facilitate the availment of insurance services of the appellant by the buyer. Based on the same, buyer procures the insurance policies for the cars/vehicle from the appellant. Out of the premium collected from the buyer of the motor car/vehicle, a portion thereof is paid by the appellant to the automotive dealer as a commission, on which amount, the automotive dealer also charged service tax and duly discharged such liabilities on making pay ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e records. 5. In this case, it is an undisputed facts that the automotive dealers had paid service tax on the nature of services described in the invoices issued to the appellant; that payment of service tax by such dealers have been accepted by the service tax authorities having jurisdiction over their business premises. Since, the service tax paid by such dealers was availed as Cenvat credit by the appellant, availment of such credit is in conformity with the Cenvat statute. We find that in an identical case, Cenvat credit was denied by the Department, holding that the invoices issued by the automotive dealers are false/fraudulent/invalid, since no service of the description contained therein was rendered by the auto dealer. The disput ..... X X X X Extracts X X X X X X X X Extracts X X X X
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