TMI Blog2013 (11) TMI 769X X X X Extracts X X X X X X X X Extracts X X X X ..... by availing CENVAT Credit - Whether Cenvat credit can be utilized for payment of service tax on 'Intellectual Property Rights Service' received by them or not - Held that:- according to Rule 3(4)(e) of Cenvat Credit Rules, 2004, Cenvat credit may be utilized for payment of service tax on any output service. According to provisions of Section 66A(1) of the Finance Act, 1994, for all purpose, when ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts are engaged in the manufacture of motor vehicles. A show-cause notice was issued on 01.5.2012 to the appellant proposing to demand service tax of Rs. 1,78,37,676/- on foreign expenditure incurred towards 'Intellectual Property Rights Service' during the period 2008-09. The appellant discharged the entire amount of Rs. 1,78,37,676/-. However, dispute arises because the appellant chose to pay maj ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tilized the Cenvat credit for payment of service tax. 2. On going through the provisions, we find that according to Rule 3(4)(e) of Cenvat Credit Rules, 2004, Cenvat credit may be utilized for payment of service tax on any output service. According to provisions of Section 66A(1) of the Finance Act, 1994, for all purpose, when demand are made under Section 66A, the service received has to be tre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vice tax paid on any input services and not capital goods. In such a situation, the appellant has made out prima facie case in their favour for correctness of payment made by them. However, it seen that payment was made after two years from the receipt of services and therefore, the appellant is liable to pay interest. Learned advocate for appellant fairly agrees to do so. Accordingly, We direct t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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