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TMI Blog2009 (8) TMI 652X X X X Extracts X X X X X X X X Extracts X X X X ..... tax paid on the input services by his sub-contractors and partly by paying the amount in cash. It is the revenue’s case that the applicant need not discharge the service tax liability and if that be so, the amount of credit taken by him on the service tax paid by his service provider is ineligible as service tax to him. Service tax before the issuance of Show Cause Notice. Held that- precedent d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... - u/s 77(2) of the Finance Act 2. The demands as indicated herein above has arisen on the ground that the applicant has collected the service tax from his purchasers of fiats discharged the service tax liability partly by utilising the credit of the service tax paid on the input services by his sub-contractors and partly by paying the amount in cash. It is the revenue's case that the applicant n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ervice tax. As regards the amount of Rs. 17,85,000/-, it is his submission that service tax liability on the recipient becomes taxable with effect from insertion of Section 66-A of the Finance Act which is from 18-4-07. Learned DR would submit that applicant is not liable to pay service tax. Hence availment of credit on the input services received by him does not arise. It is his submission that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e decisions to indicate that once tax liability is discharged by the applicant, there cannot be denial of credit, if it is eligible. We find that applicant is eligible to take credit, as they have considered their output services as taxable. As regards the amount of Rs. 17,85,000, we accept the contention raised by the learned counsel that as a recipient of the services, he is liable to pay ser ..... X X X X Extracts X X X X X X X X Extracts X X X X
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