CA Bimal Jain
Facts:
The Department denied Cenvat credit to Memories Photography Studio (the Appellant), on the ground that the service provider has not discharged the duty liability. It was alleged that the Appellant should have taken precaution to verify whether the service provider has discharged Service tax liability or not.
Held:
The Hon’ble CESTAT, Ahmedabad, held that a service recipient can only see the Cenvatable document under which Service tax paid/ payable has been indicated. However, it is not the case of the revenue that the service provider does not exist. Hence, the Appellant has correctly availed the Cenvat credit and it is not deniable.
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A good judgement based on practical views. Hope the department does not raise such issues by show cause notices and deny the cenvatable portion.