Cenvat credit cannot denied to the service recipient for non-payment of Service tax by the service provider

Court :
CESTAT, Ahmedabad

Brief :
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.

Citation :
Memories Photography Studio Vs. Commr. of C. EX. & S.T., Vadodara

Memories Photography Studio Vs. Commr. of C. EX. & S.T., Vadodara [2015 (12) TMI 266 - CESTAT AHMEDABAD]

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.