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2016 (4) TMI 777 - AT - Service TaxEligibility of Cenvat credit - on payment of service tax - rendered by their Foreign Agent - Held that:- once what was received by the respondent being output services, the same would automatically become input service in the hands of the respondent (the service receiver) in terms of Rule 2 (l) of Cenvat Credit Rules. There can be no second thought that the service of foreign clearing & forwarding agent was an integral part of the respondent’s business. It can hardly be said that the activity carried out by the Foreign C&F Agent is not an activity “relating to business”. The word “business” by itself is all embrasive to refer to activity and the definition given in the input service is “activities relating to business”. The findings of the Commissioner (Appeals) that the clearing & forwarding service received is vital for business activity cannot, therefore, be faulted with. It is strange that the department had accepted the payment of tax under reverse charge but objected to the availment and future utilization of credit for discharge of future liability by the Respondent. This stand adopted by the department does not seem to be an approach in the right direction. The further finding given by the Commissioner (Appeals) with regard to non-invocation of extended period holding that the issue is purely interpretative in law cannot also be faulted with. The submission made by the Advocate for the Respondent that there is no finding with regard to the penalty or invocation of extended period is also factually true. - Decided against the revenue
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