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2018 (6) TMI 1208 - AT - Central ExciseCENVAT credit - Reverse Charge Mechanism - whether the appellant the service recipient is entitled to avail Cenvat Credit of Service Tax paid on Man Power Services and Security Services where the burden of payment of Service Tax on recipient service under reverse charge mechanism is 75% and on the provider of service is 25%? - Held that - The admissibility of CENVAT Credit in the relation to the Service Tax paid on Man Power Supply Service by the service provider has been considered by the Tribunal in the case of M/s Gurudev Dyestuff (India) Pvt. Limited. Vs. C.C.E Ahmedabad-II 2018 (2) TMI 1399 - CESTAT AHMEDABAD where it was held that even if the entire amount Service Tax was paid by the service provider on man power service the Service recipient of said services is entitled to CENVAT Credit of the total amount. Appeal allowed - decided in favor of appellant.
Issues involved:
- Admissibility of Cenvat Credit on Service Tax paid on Man Power Services and Security Services under reverse charge mechanism. Analysis: The appeal was filed against an Order in Appeal passed by the Commissioner (Appeals) Central Excise-Ahmedabad. The main issue in question was whether the appellant, as the service recipient, could avail Cenvat Credit of Service Tax paid on Man Power Services and Security Services, where the burden of payment was 75% on the recipient and 25% on the service provider under the reverse charge mechanism. The appellant's advocate referred to a previous judgment by the tribunal in the case of M/s Gurudev Dyestuff (India) Pvt. Limited Vs. C.C.E Ahmedabad-II, where it was held that the credit is admissible even if the entire Service Tax was paid by the service provider. The advocate for the Revenue reiterated the Commissioner (Appeals) findings. The tribunal, in its analysis, considered the admissibility of CENVAT Credit on the Service Tax paid on Man Power Supply Service by the service provider. The tribunal concluded that the service recipient is entitled to CENVAT Credit of the total amount, even if the entire Service Tax was paid by the service provider. Consequently, the impugned order was set aside, and the appeal was allowed with any consequential relief as per law. The judgment was dictated and pronounced in the open court by Dr. D.M. Misra, Member (Judicial) of the Appellate Tribunal CESTAT AHMEDABAD.
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