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2015 (2) TMI 1112 - HC - Service TaxCenvat Credit - Tribunal held that the respondent shall be deemed to be an output service provider under Rule 2(p) of the Cenvat Credit Rules, 2004 (hereinafter referred to as ‘the Rules’) and was therefore entitled to Cenvat credit for the Service Tax paid by it prior to the period 5-3-2004. - Held that:- It is an undisputed position that prior to 5-3-2004 the respondent was not an output service provider. It became an output service provider subsequent to that date after it entered into a MOU with M/s. Vallab Steels Ltd. for rendering output service. If prior to the same, the Respondent paid Service Tax on the ground that M/s. JFE Engineering Corporation, a company incorporated in Japan, from whom it received input service was not liable to pay tax and subsequently it was held that the Respondent was not liable to pay Service Tax as a deemed output service provider under the Service Tax Rules, its remedy to seek a refund, if entitled in the law, is a completely separate matter. The Rules having come into force on 10-9-2004 only, and not having been made retrospective in operation, the Tribunal erred in holding that during the relevant period prior to 5-3-2004, the respondent would be deemed to be an output service provider under Rule 2(p) giving it retrospective effect. The Tribunal therefore erred in ultimately holding that availment of credit was permissible in view of the subsequent extended definition of output service which came into force on 10-9-2004 much after the period in question prior to 5-3-2004. - Credit not allowed - Decided against the assessee - In favor of revenue.
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