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TMI Blog2023 (10) TMI 676X X X X Extracts X X X X X X X X Extracts X X X X ..... der the head of Management Consultancy Service received by them from a foreign person. 2.1 Learned counsel pointed out that the appellants were receiving management consultancy service and other services. In respect of all other services, the appellants were reversing the cenvat credit in proportion to the exempted services provided by them in terms of Rule 6 of Cenvat Credit Rules, 2004. However, in respect of Management Consultancy Service, they were not reversing the proportionate credit in respect of exempted services provided by them. Learned counsel pointed out that Management Consultancy Service is covered by the Rule 6(5) of Cenvat Credit Rules, 2004 which permitted them to avail 100% cenvat credit. Learned Counsel pointed out that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s of the opinion that the trading activities are in the nature of exempted services and therefore, the appellants are required to reverse the cenvat credit proportionately in terms of Rule 6(1), Rule 6(2) and Rule 6(3) of Cenvat Credit Rules, 2004. On the other hand, the appellants are of the view that the service of 'Management Consultancy Service' is covered by Rule 6(5) of the Cenvat Credit Rules, which exempts them from the provisions of Rule 6(1), Rule 6(2) and Rule 6(3) of the Cenvat Credit Rules 2004. Rule 6(5) of the Cenvat Credit Rules, reads as under: "Notwithstanding anything contained in sub-rules (1),(2) and (3), credit of whole of Service tax paid on taxable service as specified in sub-clause (g), (p), (q), (r), (v), (w), (z ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he procedure to pay an amount equivalent to the CENVAT credit attributable to input services used for provision of exempted services subject to the conditions and procedure specified in Sub-Rule (3A). It is also clarified that the above procedure applies to common input services and credit shall not be allowed on input services used exclusively for the provision of exempted service." 5. Since rule 6(5) of the Cenvat Credit Rules, 2004 excludes the credit availed on Management Consultancy Service from the application of Rule 6(1), 6(2) and 6(3) of the Cenvat Credit Rules, 2004, no reversal of cenvat credit is required. 6. In view of above, the impugned order cannot be sustained. The appeal is allowed. (Pronounced in the open court on 16.1 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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