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2009 (9) TMI 189 - AT - Service TaxAdjustment of tax - The assessees who are providing commissioning and installation service had collected service tax for services provided by them during the period May to June, 2003 during which commissioning and installation was not a taxable service. Subsequently, they refunded the amount to the service receiver by way of issue of credit notes and then adjusted the amount towards service tax admittedly payable for the month of July, 2003. The Revenue objected to the adjustment on the ground that it was contrary to the provisions of Rule 6(3) of the Service Tax Rules, 1994 which provides for adjustment only if the value of taxable service and service tax has been refunded to the person from whom it was received. – Held that Rule 6(3) applicability arises only when any service rendered is a taxable service - the question of denial of adjustment on the ground that the assessees refunded only the service tax amount and not the value of taxable service, together with the service tax, does not arise – Revenue’s appeal rejected
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