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2015 (2) TMI 99 - AT - Service TaxUtilisation of Cenvat credit for payment under Reverse charge - demand was confirmed on the ground that the appellants had not paid the service tax in cash on Business Auxiliary Service (BAS) received from commission agents appointed abroad under reverse charge mechanism (but paid the same from CENVAT credit which was not permissible) - Held that:- The contentions of Departmental Representative that the ratio of various judgements of the High Courts referred [2013 (8) TMI 215 - MADRAS HIGH COURT] and [2014 (5) TMI 461 - Karnataka High Court] holding that the service tax under GTA services can be paid out of CENVAT credit under reverse charge mechanism does not hold for payment under reverse charge mechanism in terms of provisions of section 66A ibid requires a detailed analysis. However, having regard to the fact that the decision of the Tribunal in the case of Indian Acrylic Ltd. (2013 (1) TMI 460 - CESTAT, NEW DELHI) (involving same issue) that the CENVAT credit can be utilised for paying such service tax and in view of the fact that the situation is revenue neutral in as much as even if the impugned service tax was paid in cash, the same indisputedly was available as CENVAT credit, which in case the same could not be utilised, would prima facie be available for refund in cash, we are of the view that the appellants have made out a good case for complete waiver of pre-deposit and we order accordingly, staying recovery of the impugned liabilities during pendency of the appeal. - Stay granted.
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