https://www.taxtmi.com/caselaws?id=448487 CESTAT Allahabad held that service tax demand under reverse charge mechanism for legal services, rent-a-cab services, cloud services, and Geneva product licensing was not sustainable due to revenue neutrality. The appellant, being a registered service tax assessee, was eligible for Cenvat credit on input services. Since tax paid would be recovered as credit, there was no gain to government exchequer. Following precedents including Jain Irrigation System Ltd. and Coca-Cola India Pvt. Ltd., the tribunal applied revenue neutrality principle. Consequently, interest and penalty under Section 78 of Finance Act, 1994 were also not imposable. Appeal allowed, impugned order set aside. en-us Wed, 17 Jan 2024 00:00:00 +0530 Fri, 19 Jan 2024 11:59:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=448487 CESTAT Allahabad held that service tax demand under reverse charge mechanism for legal services, rent-a-cab services, cloud services, and Geneva product licensing was not sustainable due to revenue neutrality. The appellant, being a registered service tax assessee, was eligible for Cenvat credit on input services. Since tax paid would be recovered as credit, there was no gain to government exchequer. Following precedents including Jain Irrigation System Ltd. and Coca-Cola India Pvt. Ltd., the tribunal applied revenue neutrality principle. Consequently, interest and penalty under Section 78 of Finance Act, 1994 were also not imposable. Appeal allowed, impugned order set aside. Case-Laws Service Tax Wed, 17 Jan 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=448487