9911796707
TMI Blog2012 (12) TMI 642X X X X Extracts X X X X X X X X Extracts X X X X ..... ty, the first appellant is also doing repacking and sale of various items falling under Chapter 23 of the schedule to the Central Excise Tariff Act, 1985. 2. During the course of the audit of the records, it was found that the first appellant had availed credit of service tax paid on manpower supply service and security service during the period 2005-06 and 2006-07 up to January 2007 amounting to Rs. 2,28,476/-. The audit officers found that even though the invoices issued by the service providers charged service tax but no service tax was paid to the government. Subsequent investigations revealed that the premises given in the invoice and the registration number were found to be wrong and no service tax had been paid by the service provid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... had taken all reasonable steps that an ordinary person could have taken. Therefore in this case the extended period could not have been invoked for demanding the credit taken since the show cause notice was issued in March 2009 and therefore was time barred. He also submitted that there is no evidence to show that the appellant were aware that the security firms of Shri Madan Singh Rathod were actually not paying the amount collected as service tax by him to the government. Just because the service provider did not deposit the amount of service tax to the credit of Central Government though they recovered the same from the appellants, Revenue cannot invoke extended period and recover the amount. He also submitted that for the same reason p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on the first appellant. 7. Ld. A.R. would submit that Shri Javed Shaikh, the production officer in his statement had clearly stated that they were receiving the services from the two service providers and the service provider suddenly disappeared in the month of January 07. He also admitted that the company had not verified the existence of the service providers and service providers had come to the factory and collected the cheques. In such circumstances, it cannot be said that the appellants were not aware of the fraud played by the two service providers. He submits that if the appellants did not have any intention to suppress the facts, they would have intimated the department about the disappearance of the service providers in February ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es. As regards the credit availed in respect of security service and manpower service, as admitted by Shri Javed Shaikh, the production officer, the appellants were aware of the disappearance of the service provider after January 07. They did not effort to find out even at that stage as to whether the service providers were in existence and whether they had paid service tax collected from them to the government. It is strange that appellants received, services from a service provider whose existence they knew only because he used to come to collect the cheque and they did not even bother to verify whether the office premises in the invoice was in existence or not. As observed by the Commissioner (Appeals), the fact that the service provider ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... take it that it is their case that the demand is on the ground that appellant was engaged in the manufacture of excisable goods and trading of other goods. If that is the case in respect of trading activity, the credit attributable to trading activity, is not admissible and is required to be reversed. The principle of self assessment and submission of only the results of self assessment in the form of return would show that it is the responsibility of the assessee to assess the goods correctly and pay the taxes correctly. In this case it cannot be said that assessee was not aware that for trading activity credit is not admissible. Once the assessee is considered to be aware of statutory provisions relating to availment of credit and his ac ..... X X X X Extracts X X X X X X X X Extracts X X X X
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