2009 (9) TMI 189

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..... 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 val .....

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..... 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 Ru .....

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..... as not a taxable service. Rule 6(3) applicability arises only when any service rendered is a taxable service. Since commissioning and installation service was not a taxable service during the period when the amount was collected and refunded to the service recipients, the question of denial of adjustment on the ground that the assessees refunded only the service tax amount and not the value of tax .....

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