2014 (8) TMI 744

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....n various input services. During the relevant period appellants have utilized the credit for payment of service tax on the services rendered by Insurance Agent for which appellants are liable to pay the service tax. The Revenue issued show cause notices to the appellant on the ground that the credit is availed by the appellant in respect of the input services and the service provided by insurance agent is not output service provided by the present appellant i.e. M/s. HDFC Standard Life Insurance Co. Ltd. The adjudicating authority confirmed the demands with interest and also imposed penalties. The adjudicating authority held that as per the provisions of Rule 3 & 4 of the Cenvat Credit Rules provider of taxable service is allowed to utilize....

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.... of taxable service" include a person liable for paying Service Tax."     W.e.f. 19.4.2006, the provisions stood as follows:-     p) "output service" means any taxable service, provided by the provider of taxable service, to a customer, client, subscriber, policy holder or any other person, as the case may be, and the expressions 'provider' and 'provided' shall be construed accordingly.     (q) "person liable for paying Service Tax" has the meaning as assigned to it in clause (d) of sub-rule (1) of rule 2 of the 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 provisio....

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....ervice recipient as a service provider and, therefore, such legal fiction has to be given full effect. Similarly, in the case of Kansara Modler Ltd. (supra) this Tribunal has held as follows:-     "If we read Rule 2(q) of Cenvat Credit Rules with Rule 2(1)(d)(iv), we find that appellant is a person liable to Service Tax. Once appellant is person liable to service tax, he becomes provider of taxable service under Rule 2(r) and consequently becomes output service provider under Rule 2(p) of the Cenvat Credit Rules. Revenue is also relying on Rule 5 of Taxation of Services (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 ....