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2018 (8) TMI 1101 - AT - Service TaxUtilization of CENVAT Credit - Whether the appellant is entitled to discharge the service tax on reverse charge mechanism in respect of GTA services by utilizing Cenvat credit? Held that:- As per Rule 2(r), the person liable to pay service tax is a deemed service provider - In the present case, the appellant is paying service tax on reverse charge mechanism of GTA service. Since, statutorily, the appellant is required to pay service tax, therefore, he is deemed service provider. Consequently, the GTA service for the appellant, is a deemed output service. Accordingly, they are entitled for utilization of Cenvat credit for payment of service tax on GTA. After insertion of the bar, i.e. from 01.07.2012, the appellant was not entitled to utilize Cenvat credit for payment of service tax in respect of GTA service. However, prior to this date, utilization of credit is correct. Appeal allowed in part.
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