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2014 (12) TMI 824 - AT - Service TaxCENVAT Credit - Export of services or exempted services during the relevant period - Whether the Cenvat credit is required to be utilized up to 20% under Rule 6(3)(ii) of Cenvat Credit Rules, 2004 when the appellant is providing services both under the categories of exempted and taxable services - Held that:- Cenvat credit is required to be restricted only up to 20% of the credit taken by the appellant. Only dispute is whether C.B.E. & C. circular will have retrospective effect or not. Vide C.B.E. & C. Circular dated 9-5-2008, it has been clarified that export of services without payment of Service Tax should not be treated as an exempted services and accordingly, full credit would be admissible to the appellant. However, first appellate authority has held that circular issued on 9-5-2008 will have only prospective effect. In this regard, Hon’ble Supreme Court in the case of M/s. Suchitra Components Ltd. v. CCE, Guntur (2007 (1) TMI 4 - SUPREME COURT OF INDIA) has held that a beneficial circular has to be applied retrospectively while an oppressive circular has to be applied prospective. In view of the above law laid down by Supreme Court, it has to be held that the Circular dated 9-5-2008 will be applicable to the past period also, and appellant was rightly entitled to the Cenvat credit - Decided in favour of assessee.
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