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TMI Blog2013 (2) TMI 538X X X X Extracts X X X X X X X X Extracts X X X X ..... ying the freight from the factory to Depot. The transportation is an input service and the appellant was paying service tax from their input service tax credit account which is not admissible as the service tax credit can be utilised on output services only. The appellant was required to pay the service tax in cash and thus the cenvat credit to the tune of Rs. 85,734/- utilised by the appellant for payment of service tax covering the period from May 2005 to March 2007 towards GTA has resulted into non payment of service tax. As per Rule 3(4) of the Cenvat Credit Rules, 2004, the cenvat credit may be utilised for payment of service tax on any output service. As such the said rules restrict utilisation of cenvat credit only for payment of ser ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ri. Del.) (c) Indian Acrylic Limited 2012 (285) ELT 354 (Tri. Del.) 6. Learned departmental representative, on the other hand would submit that the definition of output service was amended from 19.4.2006 in order to hold that appellant cannot utilize credit of Cenvat for discharge of the service tax on the GTA services. It is his submission that for the period from 19.4.2006 onwards, the appellant is liable to discharge service tax liability. He would rely upon the decisions of the Tribunal in the case of ITC Limited 2011 (23) STR 41 (Tri. Bang.) to substantiate his arguments. 7. I have considered the submissions made by both sides and perused the record. 8. The issue involved in this case is whether the appellant i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sation towards payment of duty on the GTA services so received by them. 6. As discussed above, for the period prior to issue of Notification 10/2008-C.E. (N.T.), dated 1-3-2008 the issue stands finally decided in favour of the appellant by various judgments referred supra and ITC decision not being relevant to the facts of the case, we by following the earlier precedent decisions on the issue involved, set aside the impugned orders and allow both the appeals with consequential relief to the appellants. 10. I also find that the above said view of the Division Bench and my view is also fortified by the decision of the Hon'ble High Court of Himachal Pradesh in the case of Auro Spining Mills (supra) which was following the judgment of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f 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. 5. We are in agreement with the reasoning given by the Punjab and Haryana High Court and are of the view that there is no force in the submission of the revenue that the CENVAT credit cannot be utilized for payment of service tax on GTA services. Accordingly, all the appeals are dismissed. No costs. 11. Accordingly, in view of the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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