https://www.taxtmi.com/caselaws?id=796286 Revenue neutrality under the reverse charge mechanism is explained where a business entity receiving taxable legal services from an advocate or law firm bears the service-tax liability but can claim corresponding CENVAT credit for taxable output services. As payment of tax and immediate availability of credit produce no net revenue impact, the tax demand is described as unsustainable in such circumstances. The note further states that where the underlying reverse-charge liability fails on revenue-neutrality grounds, consequential interest and penalty cannot survive. The stated principle is that full availability of CENVAT credit to the same assessee defeats the reverse-charge tax demand and related penal liability. en-us Fri, 31 Jul 2026 00:00:00 +0530 Tue, 04 Aug 2026 08:39:34 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=796286 Revenue neutrality under the reverse charge mechanism is explained where a business entity receiving taxable legal services from an advocate or law firm bears the service-tax liability but can claim corresponding CENVAT credit for taxable output services. As payment of tax and immediate availability of credit produce no net revenue impact, the tax demand is described as unsustainable in such circumstances. The note further states that where the underlying reverse-charge liability fails on revenue-neutrality grounds, consequential interest and penalty cannot survive. The stated principle is that full availability of CENVAT credit to the same assessee defeats the reverse-charge tax demand and related penal liability. Case-Laws Service Tax Fri, 31 Jul 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=796286