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2014 (7) TMI 1018 - AT - Service TaxWaiver of pre deposit - Demand of service tax on reverse charge basis - Payment of pre deposit done from CENVAT Credit account - Whether pre-deposit of service tax by a recipient of service as per provisions of section 66A, utilizing Cenvat credit is legally proper - Held that:- credit and its utilization for payment of subsequent liability was making the entire levy of service tax on goods transport agency meaningless because no collection was accruing to the government. It appears that the amendments made in legal provisions were to plug this loop hole - The effect of amendment made in Rule 2(p) w.e.f 01-03-2008 to exclude service of goods transport agency and the effect of Explanation added w.e.f. 01-07-2012 in Rule 3(4) is the same. However, it appears that there is no decision with reference to Cenvat Credit Rules as amended in Rule 3(4) on 01-07-12 by adding Explanation as stated above. In this case Cenvat credit has been utilized for payment of duty liability arising under section 66A of Finance Act, 1994 on service receiver after a specific Explanation prohibiting such use was introduced in Rule 4(4) with effect from 01-07-2012. Therefore, the pre-deposit made is not proper - However, time period for making pre deposit is extended - applicant allowed to reverse the credit already made in Cenvat account for complying with stay order - Decided partly in favour of assessee.
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