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TMI Blog2015 (7) TMI 966X X X X Extracts X X X X X X X X Extracts X X X X ..... of the service receiver to examine the correctness of service tax paid by the service provider. That amounts to assessment by the service receiver of the service received by him. It is not at all the responsibility cast on him. There are several decisions taking a view that examination of correctness of tax paid is not the responsibility of the service receiver and department cannot deny the credit of service tax on this ground. In the case of Ultratech Cement Ltd Vs CCE Nagpur [2010 (12) TMI 90 - CESTAT, MUMBAI], it was held that departmental authorities have no jurisdiction over service recipient, cannot sit in judgment over the correctness of the tax paid and it is not proper to deny the assessee CENVAT credit of service tax paid by agen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... would conclude that the proceedings ended at this stage. However that is not the case with the Central Excise Department or Service Tax Department. A show-cause notice was issued on 20.06.2006 on the ground that the claim of the appellant made in the ST-3 returns that service tax has been adjusted from the CENVAT Credit account was not correct and it was proposed in the show-cause notice that credit availed itself was not correct. In the show-cause notice it was held that the invoices received by the appellant showed that they had paid rent on equipment and on this rent on equipment, service provider had charged service tax which was paid by them. 2. During the course of adjudication and appellant process, the appellants contended that wha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... here cannot be commissioning and installation service every month. Similar observations have been made by the Commissioner (Appeals). Both the authorities have not discussed or concluded that there cannot be a service tax on the equipment rental charges. The objection is that it is not an input service without even saying or examining what is the nature of service, what is the nature of equipment, what is it's use, where is it installed and no facts whatsoever have been discussed. 4. It is settled law that if service tax has been paid by the service provider and service receiver is eligible for the credit, it is not the responsibility of the service receiver to examine the correctness of service tax paid by the service provider. That a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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