TMI Blog2023 (5) TMI 296X X X X Extracts X X X X X X X X Extracts X X X X ..... ity arose by deeming the recipient of the service to be the provider and having discharged the tax liability that accrued on receipt of service, credit would be available from such date irrespective of payment not being made immediately to the actual provider of service - It is also to be noted that with the original authority having been held to have travelled beyond the show cause notice, the first appellate authority was also bound within the framework of that finding. Instead, the impugned order has based its outcome on an order which had already been set aside during the first round of litigation and relied upon non-existent material to confirm the leviability of interest. Appeal allowed. - Excise Appeal No. 85358 of 2020 - FINAL ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ramework of the show cause notice and, consequently, set aside the recovery of credit. Nonetheless, the first appellate authority demanded interest on the said amount with the finding that 5.4 The Id. Commissioner in the earlier OIA has relied upon the case Law of Praveen Jain Co. Pvt. Ltd. vs. Commissioner of S.T. Delhi [2012(25) STR 193 (Tri.-Del) wherein Hon ble Tribunal held that subsequent payment of service charges and service tax to the provider of service the appellants shall be eligible for the credit. During the interim provider, the appellants have enjoyed the monetary benefit and therefore the demand of interest for this period as held by the original authority deserves to be upheld. The said decision is squarely applica ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... In terms of rule 14 of CENVAT Credit Rules, 2004, interest liability arises only upon credit taken and utilized wrongly. Furthermore, rule 3 and rule 4 of CENVAT Credit Rules, 2004 make it abundantly clear that credit is to be taken upon receipt of the invoice for the service procured. 6. In this particular instance, tax liability arose by deeming the recipient of the service to be the provider and having discharged the tax liability that accrued on receipt of service, credit would be available from such date irrespective of payment not being made immediately to the actual provider of service. 7. It is also to be noted that with the original authority having been held to have travelled beyond the show cause notice, the first appellat ..... X X X X Extracts X X X X X X X X Extracts X X X X
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