2017 (8) TMI 1118

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....ceiving certain service from abroad. By introduction of section 66 of the Finance Act, 1994, certain services received from abroad became taxable and service tax is required to be paid under reverse charge mechanism. Therefore, the appellant had paid service tax on the service received during the impugned period and availed the credit thereon. Later on, two show cause notices were issued to the appellant to deny the credit of service tax paid on the services that they are not entitled to take credit on the said services. First show cause notice was issued by invoking the extended period of limitation to deny the credit to the appellant. The matter was adjudicated, the credit availed on the services has been denied to the appellant. Aggrieve....

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....994, the services received from abroad remained taxable and service tax is required to be paid under reverse charge mechanism prior to 18.4.2006, the Cenvat credit is available for the service tax paid prior to 18.04.2006. He submits that the CBEC has issued clarification under F.No.354/148/2009-TRU dated 16.07.2009 to that effect. Therefore, the impugned order is to be set aside. 4. On the other hand, learned AR reiterated the findings of the impugned order. 5. Heard both sides and considered the submissions. 6. On careful consideration of the submissions made by both sides, we find that the following issues have emerged before us for consideration: (a) whether for the period prior to 18.04.2006, if the appellant has paid servi....

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....r that section 66A is not a charging section by itself. In fact, it only creates a legal fiction to deem import of service as provision of service within India so that the provisions of Chapter V of the Finance Act, 1994 can be applied to. The charging section remains section 66 even for the service imported. In other words, the tax collected from the recipient in terms of Section 66A is also tax chargeable under section 66 of the Finance Act, 1994. 3. In view of the foregoing, it is clear that there is no mistake or omission in the relevant provisions of the CENVAT Credit Rules, 2004 and that credit of tax paid on imported services should be allowed if they are in the nature of input services. 8. In view of the said clarification, we....