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2013 (3) TMI 495 - AT - Service TaxService Tax - Cenvat Credit - The appellants during the period 9-7-2004 to 30-9-2006 received services of agents located abroad to promote sale of their goods abroad and not paid service tax for the services which according to Rule 2(1)(d)(iv) of Service Tax Rules, 1994 appellant are expected to pay. Revenue verified the records and found that such tax was not being paid. When the issue was pointed out to them they paid the tax involved. They also took credit of the tax paid in their Cenvat account for the reason that the impugned services were input services for them. Revenue issued Show Cause Notice for demanding the service tax which was initially short paid along with interest and penalty and also for denying the Cenvat credit taken on such services for the reason that these services could not be considered as input services. Held that:- Tribunal finds that It is no longer res integra that service tax could not have been demanded from service recipient prior to 18-4-2006. So demand for service tax in this case is not maintainable. Further the argument adopted for denying Cenvat credit also is not correct for the reason that the relevant provision in Cenvat Credit Rules, 2004 as provided in Rule 9(1). Tribunal do not see any merits of the argument of Revenue and hence the appeal is allowed by setting aside the impugned orders of the lower authorities.
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