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2018 (10) TMI 324 - AT - Service TaxUtilization of CENVAT Credit for payment of Service Tax under reverse charge basis - appellant receiving service of commission agents for export of their goods - services received from outside India - POT Rules - Rule 3(4) of the CENVAT Credit Rules, 2004 - it was alleged that the payment of service tax was to be made in cash only and not from credit account was done by the appellant on 30/05/2012 and 31/08/2012 - demand alongwith Interest and penalty - extended period of limitation. Held that:- There is no bar for utilization of CENVAT credit for deemed service provider to pay the service tax liability caused upon him in terms of Section 66A. In terms of Rule 2(r), the appellant is a deemed service provider. Rule 5 of Taxation of Services (Provided from outside India and received in India) Rules only refer to availing of CENVAT credit and not utilization of CENVAT credit. Before 20/06/2012 there was no restriction upon the deemed service provider to pay the service tax liability from CENVAT credit. The Tribunal in the case of Kansara Modler Ltd. Vs. CCE, Jaipur-II [2014 (1) TMI 1095 - CESTAT NEW DELHI] has allowed the utilization of credit. Extended period od limitation - Held that:- The period involved is 30/09/2011 to 30/07/2012 and the show-cause notice was issued on 22/05/2004 which is beyond the normal period prescribed under Section 73. Therefore, the entire demand is time barred. Appeal allowed on merits as well as on limitation - decided in favor of appellant.
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