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TMI Blog2020 (2) TMI 1204X X X X Extracts X X X X X X X X Extracts X X X X ..... nputs, for payment of service tax on services viz. Management, Maintenance or Repair, Copyright and Advertising, received by them from abroad, under reverse charge mechanism? 3. The facts of the case in brief are that the appellants are provider of the services viz. Broadcasting services, Business Auxiliary Service, Renting of immovable Property, Erection Commissioning and Installation Service and Sound recording services. During the course of audit, it was revealed that appellants had incurred expenditure in foreign currency towards the services received from various foreign based service providers and had paid the service tax by way of utilization of Cenvat credit. Therefore, a show cause notice dated 21.11.2013 was issued to them propos ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ax u/s. 66A of the Finance Act, 1994 can be made by utilizing Cenvat credit. In support of his submissions, learned Chartered Accountant drew my attention towards the decision of the Hon'ble High Court of Judicature at Bombay in the matter of CCE vs. M/s. U.S.V. Ltd.; 2019(7) TMI 567- Bombay High Court, in which it was held that there is no bar for utilizing the cenvat credit already availed to discharge service tax obligation on the import of services on reverse charge basis. He also raised the issue of limitation as well as penalty under Section 78 ibid. Per contra learned Authorised Representative appearing on behalf of Revenue reiterated the findings recorded in the impugned order and prays for dismissal of Appeal. 5. I have heard lear ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ionerate vs. M/s. GTL Infrastructure Limited in (Central Excise Appeal No. 94 of 2019) decided on 25th June, 2019 in respect of discharge of service tax obligation on reverse charge basis on import of services under Section 66A of the Finance Act, 1994 by utilization of Cenvat credit. Thus there is no reason not to follow our Court's decision in GTL Infrastructure Limited (supra). 7. On the above being pointed out, the distinction which is sought to be made out by the Revenue before us for not following the earlier decisions, is, the prohibition found in Rule 5 of the Taxation of Services (provided from Outside India and Received in India) rules, 2006. We note that the restriction provided in Rule 5 of the above rules is that the taxable ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... envisages that any Taxable Service, excluding the taxable service referred to in sub-clause (zzp) of Clause (105) of Section 65 of the Finance Act, 1994 provided by the provider of taxable service, to a customer, is an "output service". (iii) "Provider of Taxable Service" is defined, in Rule 2(r) of the Cenvat Credit Rules as including a person liable for paying Service Tax. (iv) Rule 2(q) of the Cenvat Credit Rules defines "person liable for paying Service Tax" as having the same meaning, assigned to the expression, in Rule 2(1)(d) of the Service Tax Rules, 1994 (hereinafter referred to as "the Service Tax Rules"). (v) In case of services provided by a provider located outside India and received by a recipient located in India, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vat Credit Rules." In view of the above decisions, it is settled that once the assessee in terms of Rule 2(q) r/w Rule 2(1)(d)(iv) ibid, is liable to pay service tax then he also becomes a provider of taxable service under Rule 2(r) and consequently becomes a provider of output service under Rule 2(p) ibid and becomes entitle to utilize the Cenvat credit for payment of service tax on reverse charge basis. Rule 5 of the Taxation of Service (Provided from Outside India and Received in India) Rules, 2006 prohibits only for availing of Cenvat credit and not for utilizing the Cenvat credit to discharge its service tax obligation on reverse charge basis. The period involved in this Appeal is from April, 2008 to March,2011 whereas the prohibition ..... X X X X Extracts X X X X X X X X Extracts X X X X
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