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2014 (10) TMI 31 - AT - Service TaxCenvat credit - Goods Transport Agency Services - Reverse Charge mechanism - Held that:- even though the person is not providing service but is paying service tax as per law on reverse charge basis, by the fiction of law the service on which he is discharging service tax shall be deemed to be 'output service'. In the present case also the respondent, since they discharged the service tax on GTA service, the said GTA service became an 'output service'. - Rule 3(4) of the Cenvat Credit Rules, 2004 provides the manner of utilisation of the cenvat credit availed by an assessee - From the above provision for utilisation of Cenvat credit, it provides, amongst others, the Cenvat credit can be utilised for payment of service tax on output service. As discussed in above para the GTA service though received by the respondent but paid service tax thereoupon, the said GTA service is an 'output service'. Therefore the utilisation of Cenvat credit for payment of service tax on GTA made by the respondent is legal and correct - following the Hon'ble Punjab & Haryana High Court judgment in Nahar Industrial case [2010 (5) TMI 608 - PUNJAB AND HARYANA HIGH COURT] held that prior to 01.03.2008 the payment of service tax on GTA by utilising Cenvat credit is legal - Decided against Revenue.
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