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2019 (5) TMI 1731 - AT - Service TaxCENVAT credit - services provided by the appellant to the Mutual Fund - exempt service or not - HELD THAT:- Rule 2 (p) of Cenvat Credit Rules in sofar as it declares a taxable service, is not an output service, where service tax is payable under Reverse Charge Mechanism, by the recipient of service, is in direct conflict with the provisions of the Finance Act, 1994. The, established principle of law is that rules are framed to facilitate the implementation of the Act. The Rules cannot override the provisions of the Act. It is declared that the said sub-clause (2) of Rule 2(p) of Cenvat Credit Rules to be ultra vires of the provisions of the Finance Act, 1994. Accordingly, show cause notice is not maintainable. Appeal allowed - decided in favor of appellant.
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