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2016 (10) TMI 272 - AT - Central ExciseJob work - manufacture of excisable goods falling under Chapter 90 of Central Excise Tariff Act, 1985 - the job workers were paying the service tax and the Appellant was availing Credit of the service tax paid by the job worker - job worker was exempted from payment of service tax under Notification No.8/2005-ST, dt.01.03.2005 - whether the reversal of credit and imposition of penalty justified on the ground that job worker was exempted from payment of service tax? Held that: - the decision in the case of Commissioner of Central Excise & Customs, Aurangabad Versus Laxmi Metal Pressing Works (P.) Ltd. [2009 (10) TMI 181 - CESTAT, MUMBAI] apply where it was held that a notification issued under Section 93 would exempt a provider of taxable service from payment of Service tax leviable under Section 66. Where such exemption is available, it can be said that Service tax is not payable. But that would not detract from the settled legal position that Cenvat credit of Service tax paid by the service provider is available to the service recipient under Rule 3. Reversal of credit and imposition of penalty not justified - appeal allowed - decided in favor of appellant.
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