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The Tribunal held that the appellant rightly issued credit notes to government entities that refused payment of consideration and service tax, allowing adjustment of service tax already paid as per Rule 6(3) of the Service Tax Rules, 1994. The demand of Rs.38,74,883/- service tax was set aside as unsustainable. Regarding exemption from service tax for services provided to the Consulate of Belgium, the Tribunal found the appellant had not suppressed facts and the demand was time-barred, allowing the appeal.
The Tribunal held that the appellant rightly issued credit notes to government entities that refused payment of consideration and service tax, allowing adjustment of service tax already paid as per Rule 6(3) of the Service Tax Rules, 1994. The demand of Rs.38,74,883/- service tax was set aside as unsustainable. Regarding exemption from service tax for services provided to the Consulate of Belgium, the Tribunal found the appellant had not suppressed facts and the demand was time-barred, allowing the appeal.
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