9911796707
TMI Blog2009 (1) TMI 133X X X X Extracts X X X X X X X X Extracts X X X X ..... d penalty of equal amount under Rule 15 of the Cenvat Credit Rules. 2. The facts of this case, in brief are as under: 2.1 The Appellants are manufacturer of automobile parts. During the period from Aug'05 to Dec'05, they received industrial cleaning service from M/s. Star Professional Services who, at that time, did not have any service tax registration. However, M/s. Star Security & Employment wrote a letter dt.20.7.05 to the Asstt. Commissioner that they are providing cleaning services through a sister concern 'M/s. Star Professional Services' and would like to pay the service tax under the firm 'Star Security & Employment' to save additional work load. Accordingly, during the period of dispute though the cleaning service was being prov ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sstt. Commissioner had informed that they are providing cleaning services through their sister concern M/s. Star Professional Services and that they would be paying the service tax. Since there was no response from the Deptt., M/s. Star Security & Employment started paying service tax on the cleaning services being provided by their sister concern M/s. Star Professional Services. Subsequently, when the Deptt. objected to taking Cenvat credit on the basis of invoice of M/s. Star Professional Services on the ground that the Star Professional Services do not have service tax registration and had not paid the service tax, M/s. Star Professional Services took separate service tax registration in Jan'06 and subsequently paid the entire tax again ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rvices. This showed that the Appellant knew very well that M/s Star Professional Services who had issued invoice had not paid the service tax. (3) Obtaining service tax registration subsequently and payment of service tax subsequently by M/s. Star Professional Services for Aug'05 to Dec'05 period does not regularize the irregularity and on this basis, the Cenvat credit cannot be allowed to the Appellant. (4) The Appellant's plea that M/s. Star Security & Employment vide letter dt.20.7.05 addressed to the Asstt. Commissioner had informed that they would be paying the service tax on behalf of M/s. Star Security and Employment and they sought the Department's response in this regard shows that taking of Cenvat credit was under the intimation ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... credit could be taken. In view of this, I am of the view that the credit has been rightly taken on the basis of TR.6 challans which are in the name of Star Security & Employment and who were providing the cleaning services through their sister concern M/s. Star Professional Service. Moreover, I also find that subsequently in view of the Deptt's objection M/s. Star Professional Services have also obtained to take service tax registration of Jan'06 and have discharged the service tax liability for the same period once again alongwith interest in March'06. In view of this also, it would not be correct to deny the Cenvat credit to the appellant. In view of these circumstances, the impugned order is not sustainable and the same is set aside. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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