2016 (8) TMI 850

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....d in the manufacture of Self-Adhesive Tapes and they are registered under Service Tax provisions under the taxable category of Management Consultancy Service. During the scrutiny of records by the internal audit party, it was observed that assessee had availed irregular credit of Rs. 43,29,644/- (Rupees Forty Three Lakhs Twenty Nine Thousand Six Hundred and Forty Four only) on Management Consultancy Services included payments for services availed prior to 10.09.2004. As per Notification No. 23/2004-CE (NT) dated 10.09.2004 any service tax paid by the manufacturing unit could be availed as credit earlier to 10.09.2004, only if the unit was also providing any taxable output service. Thereafter a show-cause notice was issued to the assessee fo....

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.... introduction of Section 66A of the Finance Act, 1994. Learned counsel for the assessee relied upon the Bombay High Court decision in the case of M/s. Indian National Ship-owners Association reported in 2008-TIOL-633-HC-MUM-ST in support of his case and the said decision has been affirmed by the Hon ble Supreme Court vide its order dated 14.12.2009 reported in [2009-TIOL-129-SC] in an appeal filed by the department against the High Court order. Applying the ratio of the above said decision, I hold that respondent-assessee was not liable to pay service tax on reverse charge basis prior to 18.04.2006 when for the first time reverse charge method was introduced and this has also been held by the Commissioner (Appeals) in the impugned order als....