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2014 (6) TMI 628 - AT - Service TaxDemand of service tax - Goods Transport Agency - availing cenvat credit while availing exemption under notification no.1/06-ST dated 1.3.2006 (S.No.6) - as soon as this irregularity was pointed out to them, they reversed the same along with interest. The point of dispute is that as to whether the subsequent reversal of the cenvat credit would amount to non availment of credit - Held that:- for availment of 75% abatement in the notification no.1/06-ST which came into force w.e.f. 1.2.2006 the conditions of non-availment of cenvat credit in respect of input service has been added. - Apex Court has held that, when the benefit of an exemption is subject to the condition of non-availment of cenvat credit and initially, the assessee has taken the cenvat credit but subsequently, before the clearance of the exempted goods or after the clearance of the exemption goods the credit taken was reversed, it would amount to not taking the cenvat credit and the benefit of exempted notification cannot be denied - Following decision of Chandrapur Magnet Wires (P) Ltd. (1995 (12) TMI 72 - SUPREME COURT OF INDIA) and the judgement of the Hon’ble Allahabad High Court is in the case of Hello Mineral Water Pvt. Ltd. (2004 (7) TMI 98 - HIGH COURT OF JUDICATURE AT ALLAHABAD) - Decided in favour of assessee.
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