2018 (7) TMI 761 – CESTAT CHENNAI – TMI – CENVAT Credit – Manpower supply services – recipient of services – tax was discharged by service provider – The Department was of the view that the appellant is not eligible to avail credit of the entire 100% and also was of the view that they have not discharged the 75% liability to the Government – Held that:- It is clear that on some wrong notion, the service provider has discharged 100% service tax, on which the appellant has availed credit. The very same issue has come up for analysation before the Bench at Ahmedabad and in the case of M/s. Gurudev Dyestuff (India) Pvt. Ltd. [2018 (2) TMI 1399 – CESTAT AHMEDABAD], where the Tribunal has held that the appellant would be eligible for entire credit – credit allowed – appeal allowed – decided in favor of appellant. – Appeal Nos. ST/40633,40634/2018 – Final Order No. 41808-41809 / 2018 – Dated:- 13-6-2018 – Ms. Sulekha Beevi C.S., Member (Judicial) For The Appellant : Shri M. Kannan, Advocate
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artment, is due to the Government from the appellant. After due process of law, the original authority confirmed the demand in both the Show Cause Notices along with interest and imposed penalties. In appeal, the Commissioner (Appeals) upheld the same. Hence, these appeals. 2. On behalf of the appellant, the learned Counsel, Shri M. Kannan submitted that, by mistake, the appellant had paid the service tax to the service provider and the service provider had discharged the 100% service tax to the Government. He argued that the Department has no case that the services have not suffered tax. That entire service tax on the said services have been paid to the Government by the service provider. As raised in the invoices, the appellant has availed credit on the 100% service tax paid by the service provider. He adverted to the decision in the case of M/s. Gurudev Dyestuff (India) Pvt. Ltd. Vs. C.C.E. Ahmedabad, 2018 (2) T.M.I. 1399 – CESTAT Ahmedabad to support these contentions. In appeal, S
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scharged 100% service tax, on which the appellant has availed credit. The very same issue has come up for analysation before the Bench at Ahmedabad and in the case of M/s. Gurudev Dyestuff (India) Pvt. Ltd. (supra). The Tribunal has held that the appellant would be eligible for entire credit. 6. The issue in appeal. ST/40634/2018, is with regard to the demand raised by the Department on the 75% service tax on manpower supply agency services, alleging that the appellant instead of the service provider, ought to have paid the amount directly to the Government. When the Department does not dispute that the services have suffered the entire service tax, they cannot again tax the service recipient for services. The Tribunal, in the case of Malu Electrodes Pvt. Ltd. (supra), has considered the very same issue and held that the demand in such situation cannot sustain. 7. Following the said decisions, I am of the view that the impugned orders in both these appeals cannot sustain and requires t
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