2014 (8) TMI 738

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..... 14 (4) TMI 637 - CESTAT MUMBAI] - Stay granted. - ST/85740/14-Mum - Stay Order No. S/619/2014-WZB/C-I(CSTB) - Dated:- 24-6-2014 - S.S. Kang And P.S. Pruthi, JJ. For the Appellant : Mr. Nihal Kothari and Ms. Prajakta Menezes, Chartered Accountant For the Respondent : Mr. B.S. Meena, Additional Commissioner (AR) PER : S.S. Kang Heard both sides. 2. The applicant filed this application for waiver of pre-deposit of service tax, interest and penalties. The demand is confirmed by denying the utilization of cenvat credit for payment of service tax under reverse charge mechanism. 3. We find that the issue is now settled against the Revenue in the case of Tata AIG Life Insurance Co. Ltd others vs. CCE, Mumbai Thane - .....

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..... e Service Tax Rules, 1994. (r) provider of taxable service include a person liable for paying Service Tax. 5.2 Thus, the only change in the legal provision is the omission of Explanation under Rule 2(p). An Explanation only clarified the position. By omission of the explanation, the meaning does not undergo any change. Therefore, both prior to 19.4.2006 as also w.e.f. 19.4.2006, the meaning of the expression output service', provider of taxable service' and person liable for paying service tax' remain the same. Since in the case of Insurance Auxiliary Service, the liability to pay Service Tax is on the service recipient in terms of Rule 2 (1)(d)(iii) of the Service Tax Rules, 1994, the appellants are the prov .....

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..... (Provided from Outside India and Received in India) Rules. We find that Rule 5 refers to availing of Cenvat Credit and not the utilization of credit. We are therefore of the view that the finding of the Commissioner not treating the appellant as output service provider, is not correct and accordingly we set aside the impugned order and allow the appeal. 5.3 In view of the above decisions of the various High Courts, the decisions of the Tribunal relied upon by the Revenue become irrelevant. Accordingly, we hold that the appellants in present appeals were entitled to utilize CENVAT Credit of the Service Tax paid on various input services for discharge the Service Tax liability on the output service of Insurance Auxiliary Service . .....

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