The Mumbai bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) held that no reversal of CENVAT Credit of service tax can be done on already paid duty or tax which was not payable, and even if the activity does not amount to manufacture. Turner Project Management India Pvt. Ltd, the appellant assessee paid service tax under the reverse charge mechanism on the expenditure incurred in foreign currency in respect of contribution towards social security for employees of their overseas holding company such employees were working for the assessee in India and the assessee availed CENVAT credit of the amount since they had paid service tax under reverse charge mechanism. The assessee appealed against the order passed by the Commissioner (Appeals) to confirm the demand for reversal of availed CENVAT credit against the assessee. Raj Khona, the counsel for the assessee contended that the assessee was not required to pay the amount towards service tax, it was paid and revenue had not held through any order that the amount was not payable and did not pass any assessment order nor refunded the said amount to the assessee and, therefore, the amount had attained the nature of service tax though it was not payable by the assessee. Also submitted that the situation was revenue neutral since the amount which was not required to be paid had been paid and equal credit was availed. Thus there was no loss to the exchequer. S.B.P. Sinha, the counsel for the department relied on the decisions made by the lower authorities and contended that under Rule 2(l) of CENVAT Credit Rules, 2004, the amount paid by the assessee did not become duty or service tax paid and, therefore was not eligible to be availed as CENVAT credit. The Bench observed that in the case of CCE, Pune vs. Ajinkya Enterprises, the court held that central excise duty which was not required to be paid on the final product was paid by the assessee and the assessee had availed CENVAT credit of duty paid on the inputs and the assessment of final product was not reversed by revenue and the assessee before they were not paid the refund of the duty which was not required to be paid, availing of CENVAT credit of duty paid on inputs was regular. A single-member bench comprising Anil G. Shakkarwar (Judicial) quashed the demand for the recovery of the availed CENVAT Credit while allowing the appeal filed by the assessee.