2011 (5) TMI 79

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..... es are of the view that the appellant could not utilize the Cenvat credit for discharge of service tax on the GTA services. Coming to such a conclusion show cause notice was issued for the recovery of the amount paid by the appellant during the period 1st January 2005 to 30th September 2005. Appellant contested the show cause notice before the Adjudicating Authority. Adjudicating Authority after considering the pleas made by the appellant before him dropped the proceedings initiated, following the precedent case laws stated by the appellant. Learned Commissioner as a revisional authority, under Section 84 of the Finance Act, 1994, issued a show cause notice to the appellant for review in the order passed by the Adjudicating Authority. Appel .....

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..... rge of service tax liability on the GTA services received by him and liable to discharge the same as a recipient of the services under the provisions of Section 68 of the Finance Act, 1994.   9. I find that the issue is no more res-integra. Hon ble Punjab & Haryana High Court in Central Excise Appeal No. 99 of 2008 was deciding on the very same issue held in favour of assessee. With respect, I may reproduce the the relevant paragraphs of the Hon ble High Court :-   The assessee filed the appeals before the Commissioner (Appeals), Customs & Central Excise, who set aside the order of the Adjudicating Authority and held that services received by the respondents on which they were liable to pay service tax became Output Service for .....

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..... 3 (4) (e) of the Cenvat Credit Rules, 2004, the Cenvat credit may be utilized for payment of service tax on any output service.   In the present case also, the service tax was paid out of the Cenvat credit on GTA services and, hence, the respondents were well within their right to utilize the Cenvat credit for the purpose of payment of service tax. The Commissioner (Appeals) as well as the Tribunal have rightly held that the respondents were entitled to pay the service tax from the Cenvat credit.   In view of the above, the question of law posed in these appeals is answered in favour of the assessee and against the revenue. We find no merit in these appeals and the same are accordingly dismissed.  
Case laws, Decis .....

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