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2019 (1) TMI 1820 - AT - Service TaxRefund of service tax paid - exempt services as per N/N. 25/2012-S.T. (at Sl. No. 6) or not - appellant received legal consultancy services - reverse charge mechanism - applicability of Section 43A of Companies Act, 1956 - appellant seeks to submit that the authorities below have erred in relying upon the definition provided in Companies Act, 1956, without any justification whatsoever - appellant submits that changes in inventory of work in progress as appearing in the Financial Statement cannot be included in the turnover, as the amount reflects purchases and not sales. HELD THAT:- The expression “turnover” is not defined in the Notification No. 25/2012-S.T. or in the Finance Act, 1994, and hence in order to interpret the meaning of the said term, in Serial No. 6 of Notification No. 25/2012-S.T., the common parlance meaning of the said term as understood by those dealing in accounts and taxation would have to be taken. The amount of increase in inventory, which the lower authorities have treated as turnover, is not a sale by the appellant. To the contrary it is only purchase of inventory by the appellant and by no stretch of imagination the same can be construed as turnover - Once the amount pertaining to “Changes in Inventory of work in progress” is excluded from turnover, admittedly the amount remaining is less than Rs. Ten lakhs, and hence the benefit of the exemption is available to the appellant. Refund allowed - appeal allowed - decided in favor of appellant.
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