9911796707
TMI Blog2013 (1) TMI 460X X X X Extracts X X X X X X X X Extracts X X X X ..... ervice Tax paid on inputs services used in or in relation to manufacture of final products. The appellants are availing the services of foreign agents and were paying commission on said agents located outside India. They were discharging the Service Tax liability in respect of such commission paid to the foreign agents in terms of provisions of Rule 2(1)(d) (iv) and (v). The issue required to be decided in the present appeal is as to whether the appellant can utilise the Cenvat credit so earned by them for discharge of Service Tax liability in respect of overseas commission agent. 3. The lower authorities have denied the utilisation of Cenvat credit availed by the appellant on the capital goods, for the purpose of discharging their Service ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... na High Court decision in the case of CCE v. Nahar Industrial Enterprises Ltd. [2012] 35 STT 391 and Himachal Pradesh High Court decision in the case of CCE v. Auro Spinning Mills [C.E.A. Nos. 9, 12, 13, 15, 16 & 18 of 2008, dated 29-7-2011] laid down a law that Cenvat credit can be utilised for payment of Service Tax on GTA services, by recipient assessee. However, the period in the said decisions was prior to 19.4.06. 5. With effect from 19.4.06, the Explanation to Rule 2(b) of Cenvat Credit Rules which conferred status of output services provided to the assessee liable to pay Service Tax on receipt of services was deleted. 6. The question required to be decided is as to whether such deletion of deeming provision would lead to denial of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ny output services. The question which arises is as to whether the appellant can be said to be the provider of any output services. The term 'output services' defined under Rule 2(p) of the Cenvat Credit Rules mean that "any taxable service provided by the provider of taxable service....". The term 'provider of taxable service' has been defined in Rule 2(r) of the Rules to include "a person liable for paying service tax". It is not in dispute that as recipient of service from goods transport agency, the appellant is liable to pay service tax by virtue of notification under Section 68(2) of the Finance Act, 1994. If the appellant is the person liable to pay service tax, he would be deemed to be provider of taxable service by fiction of law a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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