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TMI Blog2018 (7) TMI 22X X X X Extracts X X X X X X X X Extracts X X X X ..... of CENVAT Credit on payment of Service Tax under reverse charge mechanism. 2. Brief fact of the appellant's case is that the appellant manufactured Polyester Fabric Yarn (PFY) and exported the manufactured goods. In the process of manufacturingv, they engaged service provider located outside India for the purpose of providing support service to the appellant company. During the audit conducted by the Central Excise Department, it was observed that the appellants company had availed CENVAT Credit attributable to the consideration paid to the foreign service provider in contravention of Rule 3 of CENVAT Credit Rules, 2004 read with Rule 9(c) and Rule 2(f) of the Place of Provision of Service Rules, 2014 (POPS Rules in short). A show-cau ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . challan but merely stated that challan was not a valid document for taking credit because Service Tax was not payable by the appellant. (iv) Since it is a settled principles of law that re-assessment is not possible at the recipient's end, even if it is assumed that the appellants are not liable to pay Service Tax and credit is inadmissible, the same credit should be considered as best form of refund of tax, which has been incorrectly received and Revenue should observe the revenue neutral situation, in adjusting the demand of Service Tax of equal amount against CENVAT Credit wrongly made through reverse mechanism. 4. Respondent department has not placed any cross-objection, but Shri H.M. Dixit, learned AR during course of hearing o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ecisions, two of which reported in 2007 (229) ELT 837 (T) and 2015 (37) STR 316 (T) are submitted by the learned Counsel for the appellant, support the observation made above. Numerous decisions pronounced by the Tribunal, one of the which has been reported in 2012 (25) STR 66 (Tri-Chennai) and other in 2011 (21) STR 383 (Tri-Del) also are indicative to the fact that Service Tax for service received from non-resident service provider is not required to be paid by the appellant and in a revenue neutral situation, since the same was mistakenly paid and credit availed on bona fide belief that such credit was available, can be adjusted against tax demand. 7. In all those decisions referred above, the Tribunal had set aside the demand of Servic ..... X X X X Extracts X X X X X X X X Extracts X X X X
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