2018 (8) TMI 601

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.... First Schedule to Central Excise Tariff Act, 1985. The respondent is also registered with the Service Tax department in respect of the taxable services viz. GTA, Manpower Recruitment or Supply Agency Service and Security Service. Being a recipient of taxable service, the respondent discharges the service tax liability under reverse charge mechanism, as provided under sub-section (2) of Section 68 of the Finance Act, 1994. In this case, the respondent had filed refund claim under Rule 5B of the CENVAT Credit Rules, 2004, claiming refund of service tax paid on the taxable services received by it. The refund application was rejected by the original authority on the ground that the respondent being a recipient of taxable service and not a serv....

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....services received by it and discharged the service tax liability on reverse charge mechanism, as provided under sub-section (2) of Section 68 of the Finance Act, 1994. Since the respondent discharged the service tax liability in the capacity of recipient of service, Rule 5B should be equated with Rule 5 of the rules, for grant of refund of service tax paid on the taxable services. I find that this Tribunal in the case of United News of India v. Commissioner of Service Tax, New Delhi - 2017 (51) STR 23 (Tri. - Del) and CCE & S.T., Indore v. Cummins Technologies India Ltd. - 2017 (7) GSTL 69 (Tri. - Del.) has held that when the recipient pays service tax on receiving the taxable service, the provisions of section 66 of the Act [pari-materia w....

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....hile interpreting the provisions of Section 66A ibid, has held that the benefit of the exemption should also be available to the recipient of service. The relevant paragraph in the said order is extracted herein below: 5. Heard both sides and perused the appeal records. The only dispute in the case is that the eligibility of the appellant for the exemption under Notification cited above as a recipient of service. A plain reading of Section 66A brings out the legal obligation of the recipient of service in certain situations. The said Section stipulates that taxable service shall be treated as if provided by the recipient of service in India and accordingly, all the provisions of Chapter V shall apply. We find that the tax liability is pu....