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2015 (1) TMI 1465 - BOMBAY HIGH COURTCENVAT Credit - output services or not - transport services availed by the Respondent and provided by a goods transport agent - utilization of Cenvat Credit for payment of Service Tax on services provided by goods transport agent - Explanation to Rule 2(p) of the Cenvat Credit Rules, 2004 - HELD THAT:- It is not disputed by the learned Counsel appearing for the appellant that the Explanation was omitted in 2006; whereas the dispute under consideration is in respect of the year 2005 and, as such, the Explanation to Rule 2(p) of the said Rules would be applicable to the facts of the present case. On plain reading of the said Explanation, as it is not disputed that the respondents are paying service tax, the services rendered by the respondents on that count are deemed to be "output service" as the other conditions therein are satisfied. On perusal of the order passed by the Commissioner (Appeals), Central Excise & Customs, Goa, dated 16th March, 2007, it is seen that the Commissioner has taken a view that as per Explanation to Rule 2(p) of the Cenvat Credit Rules if a person liable for payment of service tax does not provide any taxable service, the service for which he is liable to pay service tax shall be deemed to be the output service. The Commissioner has further found that on harmonious reading of various rules of Cenvat Credit Rules and Service Tax Rules, it is clear that Cenvat Credit can be utilized for payment of Service Tax liability in respect of goods transport agent. Appeal dismissed.
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