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2018 (1) TMI 1131 - AT - Service TaxCENVAT credit - GTA Services - It appeared to the department that such utilization of cenvat credit was irregular since the service provided by the GTA for outward transportation does not become an output service for consignor or consignee in terms of Rule 2(p) and 2 (r) of the Cenvat Credit Rules, 2004 - Held that: - prior to 1.3.2008, there is no bar on the appellants for utilization of cenvat credit for discharging, as a consignor, the tax liability on GTA services availed for outward transportation - for the period 1.3.2008 to September 2008, i.e., the remaining part of the disputed period, by virtue of the amendment brought in Rule 2 (p) of the Rules vide Cenvat Credit (Amendment) Rules, 2008 w.e.f. 1.3.2008 appellant cannot utilize cenvat credit for discharging tax liability on the said GTA service for outward transportation. Cenvat credit so availed will then will have to be paid back along with appropriate interest liability thereof. For this limited purpose, we remand the matter to the adjudicating authority, only for the purpose of calculating the amount required to be paid back and the interest liability thereon for the period 1.3.2008 to September 2008. Penalty - Held that: - the issue per se was mired in confusion during the disputed period - penalty cannot be imposed. Appeal allowed in part and part matter on remand.
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