2007 (2) TMI 6

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....of Rs. 74,609/- on the ground that the tax was paid by service providers of Steamer Agent services for payment of service tax on output service of Cargo Handling and both services, do not fall within the same sub-clause of clause (90) of Section 65 of Chapter V of the Finance Act, 1994. The Department relies upon Rule 3 of the Service Tax Credit Rules 2002 which reads as under: "Service tax cre....

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.... 3(i) and Rule 3(2) is only a deeming provision which cannot solely be relied upon for the purpose of denying service tax credit to the appellants. However, in view of the deeming provision which clearly states that two services shall be deemed to be falling in the same category of taxable service, if the input service and output service fall in the same sub-clause of clause (90) of Section 65 of ....