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2017 (9) TMI 893 - AT - Service TaxManagement Consultancy Services - It was alleged that the appellants have received Franchisee Service from PG and service tax on the same was payable under reverse charge as import of services in terms of Section 66A of the Finance Act, 1994 - Held that: - the so called service of Franchise was provided by PG, USA to the appellant for which the appellant has paid the fees in convertible foreign exchange, this amount was paid out of the total receipt by the appellant from the ultimate service recipient i.e. Indian Hotels therefore the service received from PG, USA got subsumed in the service provided by the appellant to Indian Hotels - As regard the service tax liability on the appellant, even if they are liable to pay the said service tax, they are legally entitled for the Cenvat credit on the entire amount which will reduce the liability of service tax on the appellant. Accordingly, the appellants net payment of service tax to the Government exchequer will reduce to the extent of service tax payable in respect of Franchise service, therefore the entire issue is revenue neutral - this is a clear case of revenue neutrality. The demand of service tax in the present case amounts to double taxation on the part of the same service charges - appeal allowed - decided in favor of appellant.
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