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2017 (11) TMI 1468 - AT - Service TaxAbatement - N/N. 15/2004-ST or 01/2006-ST dated 01.03.2006 - denial on the ground that appellant availed CENVAT credit - Held that: - Admittedly, the appellants availed credit on input services. That will bar them from availing said abatement. However, reversal of credit already availed will amount to non-availment of credit - abatement allowed. Reversal of credit - whether or not the appellants are covered by the said ratio of the decision in the case of CHANDRAPUR MAGNET WIRES (P) LTD. Versus COLLECTOR OF C. EXCISE, NAGPUR [1995 (12) TMI 72 - SUPREME COURT OF INDIA], with regard to the reversal of credit - Held that: - The proportionate calculation of the input service credit attributable to the taxable output service of “commercial or industrial construction” can be categorically established from such records - in case of reversal of such proportionate credit attributable to commercial or industrial construction service then the appellants eligibility to the abatement is to be upheld - the appellant is covered by the ratio of the above case. Whether or not reversal of proportionate credit will satisfy the ratio with reference to non-availment of credit which is a condition for abatement? - Held that: - It is clear that reversal of credit even to a proportionate extent attributable to a particular output service will satisfy the condition of Notification providing for exemption or abatement. The condition that no credit of tax paid on the input service will stand fulfilled if reversal of already taken credit is done. Appeal allowed - decided in favor of appellant.
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