TMI Blog2010 (11) TMI 174X X X X Extracts X X X X X X X X Extracts X X X X ..... terms of Rule 2(1)(d)(iv) of Service Tax Rules, 1994 - Hon’ble Bombay High Court in the case of Indian National Shipowners Association v. Union of India (2008 -TMI - 32013 - HIGH COURT OF BOMBAY) wherein it was held that the appellant is not liable to pay service tax at all prior to 18-4-2006, the demand of service tax from the service recipient is not sustainable - decided in the favour of the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d paid service tax of Rs. 5,84,233/- vide TR-6 challan No. 21/2005-06 in terms of Rule 2(1)(d)(iv) of Service Tax Rules, 1994. This service tax relates to the services received and availed by the appellant prior to 1-1-2005 in terms of Rule 2(1)(d)(iv) of Service Tax Rules, 1994 on behalf of the service providers and the said service and person liable to pay service tax has been notified under Sec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n revenue neutral and hence they have rightly availed cenvat credit on the service tax paid by them on the above services. The demands are to be dropped. To support his contention, he places reliance on the decision of this Tribunal in the case of Aditya Cement Versus CCE, Jaipur-II reported in 2007 (7) S.T.R. 153 (Tri.-Del.) = 2007 (218) E.L.T. 116 (T). Accordingly the impugned order is to be set ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it was held that prior to 18-4-2006, the demand of service tax from the service recipient is not sustainable. The same view has been confirmed by the Apex Court. In this case, the service tax has been paid for the earlier period prior to 1-1-2005, the amount paid by the appellant was not payable at all. It is also contended by the appellant that they have deposited the amount during the course of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd took the same. Accordingly it is situation revenue neutral. Hence, the appellant is not liable to reverse the cenvat credit availed of service tax which was not liable to pay service tax. Accordingly, the impugned order is not sustainable. 7. With these observations, the impugned order is set aside and the appeal is allowed. (Pronounced in the open court on 3-11-2010) - - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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