TMI Blog2019 (2) TMI 1021X X X X Extracts X X X X X X X X Extracts X X X X ..... er : Ramesh Nair The brief facts of the case are that the appellant have paid service tax on reverse charge basis in respect of services received from the overseas, by utilizing their Cenvat credit and after making the payment of service tax, the same amount was taken as Cenvat credit in their Cenvat account. A common order-in-original was issued wherein the demand of service tax on reverse charge basis, was confirmed on the ground that the appellant was not supposed to utilize Cenvat credit for payment of servicer tax in respect of services received, on reverse charge basis. In the same order, since the payment of service tax was held illegal, the Cenvat credit of the same amount was disputed and the same was denied. The appellant fi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oad on reverse charge basis, on the ground that the appellant had wrongly paid service tax by utilizing Cenvat credit. Consequently, in the same order, for the said service tax paid by them, the demand was confirmed. I observed from the order of this Tribunal dated 20.11.2017 that the issue of wrong utilization of Cenvat credit for payment of service tax has been decided in favour of the appellant, which is reproduced below:- 2. Heard both sides, considered the submissions. As the issue has already been settled by various judicial pronouncements wherein it has been held that for payment of service tax, Cenvat credit can be utilised in cash first and thereafter the assessee is entitled to avail Cenvat credit. The issue came up this Tri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .2012 which is effective from 01 July 2012 and the provisions came into existence for payment of service tax under reverse charge mechanism from Cenvat account to be utilised. As the period involved in this case is April 2Q08 to March 2009. Therefore, the amended provisions are not applicable in this case. In that circumstances, the impugned order deserve no merits and the same is set-aside. In result, the appeal is allowed with consequential relief, to the appellant. 5. From the above order, it can be seen that the appeal was allowed holding that the utilization of Cenvat credit for payment of service tax is correct. If that be so, then the appellant has correctly made the payment of service tax and the same is available as Cenvat credi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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