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2019 (5) TMI 157 - AT - Service TaxUtilization of CENVAT credit for payment of Service Tax under RCM - import of “Information Technology Software Service” - HELD THAT:- This Tribunal in the case of PLANSEE INDIA HIGH PERFORMANCE MATERIALS PVT LTD VERSUS COMMISSIONER OF CENTRAL TAX [2018 (10) TMI 324 - CESTAT BANGALORE] has considered the same issue and held that there is no bar for utilization of CENVAT credit for deemed service provider to pay Service Tax liability from CENVAT credit in terms of Section 66A - CENVAT credit can be utilized for payment of service tax payable under reverse charge mechanism in respect of the services received from abroad. CENVAT Credit - input services - air ticket booking - employee gratuity - factory insurance - factory building maintenance - HELD THAT:- The Learned Commissioner in the impugned order has observed that the air ticket booking, employee gratuity, factory insurance expenses and factory building maintenance on description itself appears to have nexus with output services - Further, Explanation to Rule 3(4) of CCR, 2004 was inserted with effect from 01.07.2012 whereby restriction was imposed but in the present case, the period involved is April 2010 to July 2012 therefore for one month of July 2012, the appellant is liable to pay Service Tax in cash and is not entitled to utilize CENVAT credit for the month of July 2012. Thus, the impugned order is set aside by allowing the appeal of the appellant except for the month of July 2012 for which he is liable to pay the Service Tax in cash - appeal allowed in part.
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