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2015 (6) TMI 1031 - AT - Service TaxLiability of Service tax - Services received from foreign service providers - Intellectual Property Services, Management Consultancy Services and Business Auxiliary Services - Amount paid towards service tax by reversal of Cenvat credit - Appellant submitted that an amount paid by utilizing Cenvat credit related to the period prior to April, 2006 and the demand for payment of service tax on output services has been dropped for this period, so, the question of recovery of Cenvat credit utilized for payment of service tax does not arise. Held that:- Commissioner has clearly held that for the period prior to 18-4-2006, there is no liability for payment of Service Tax on services received from abroad. Therefore, whether they paid the amount by utilizing Cenvat credit or by cash is irrelevant. Strictly going by law, when the demand for Service Tax on output services is dropped, the amount paid would be refundable. The only question is whether the appellant is required to pay the amount because it is inadmissible. So, in the absence of any allegation that the credit was not admissible and in view of the specific allegation that the credit could not be utilized for payment of Service Tax for output services, the Commissioner, as submitted by the appellant, has clearly traveled beyond the show cause notice. Moreover, in the absence of any finding that the credit is inadmissible, it cannot be recovered also. Therefore, the order of the Commissioner directing to pay an amount is not sustainable and accordingly, set aside. - Decided in favour of appellant
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