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2015 (3) TMI 1241 - AT - Service TaxPayment of service tax under reverse charge method through cenvat credit instead of cash - commission paid to the overseas agents - Held that: - We find that in the appellant/assessee’s own case [2011 (8) TMI 265 - CESTAT, NEW DELHI], it was held that for the period prior to Notification No. 10/2008-CE (NT), the question whether Cenvat credit can be utilised for payment of service tax on GTA stands settled in favour of the assessee by various decisions of the Tribunal and there was no restriction for utilisation of Cenvat credit by manufacturing unit towards payment of service tax on GTA as output service provider. In the case of Kansara Modler Ltd. Vs. CCE, Jaipur-II [2014 (1) TMI 1095 - CESTAT NEW DELHI], it was held that Cenvat credit can be utilised for payment service tax payable under reverse charge mechanism in respect of service received from abroad. Similarly Karnataka High Court in the case of CST, Bangalore Vs. Aravind Fashions Ltd. [2011 (9) TMI 852 - KARNATAKA HIGH COURT], held that though assessee was recipient of Intellectual Property Service from abroad they were deemed to be provider of service liable to pay service tax and therefore such service tax can be discharged by using Cenvat credit. The demand confirmed against the appellant/assessee do not survive. In such a situation, the Revenue’s appeal contesting the cum tax benefit becomes infructuous - appeal allowed - decided in favor of appellant.
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