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2021 (12) TMI 623 - AT - Service TaxUtilization of CENVAT Credit - availment/utilization of credit disputed by the department on the ground that as a recipient of service, cenvat credit cannot be used for payment of service tax on the output service - HELD THAT:- The period of dispute involved in this case is from April 2015 to March 2017. It is an undisputed fact that in the capacity of recipient of service, the appellant had paid the service tax on the disputed input services under the reverse charge mechanism and that such service tax paid by them was availed and utilized for payment of service tax on the output services. The manner of availment and utilization of cenvat credit is contained in sub-rule (1) and (4) of Rule 3 ibid respectively. Clause (e) in sub-rule (4) ibid provides for utilization of cenvat credit for payment of service tax on any output service. However, an explanation clause was appended in the said sub-rule vide Notification No. 28/2012- C.E. (N.T.), dated 20.06.2012, w.e.f. 01.07.2012, providing the restrictions that cenvat credit cannot be used for payment of service tax in respect of services where the person liable to pay tax is the service recipient. Since, as a recipient of taxable service, the appellant had utilized the cenvat credit; such utilization was disputed by the department. Since, the period of utilization of cenvat credit is after the amendment of sub-rule (4) ibid, the case of the appellant squarely falls under such amended provisions and the other provisions of the statute cannot be relied upon or referred to for taking a contrary view in favour of the appellant that as a recipient of taxable service, they were eligible to utilize the cenvat credit for payment of service tax on the output services. Appeal dismissed - decided against appellant.
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