TMI Blog2014 (7) TMI 541X X X X Extracts X X X X X X X X Extracts X X X X ..... ilised towards payment of Service Tax in respect of services received from Goods Transport Agency inasmuch as by a deemed fiction of law service recipient is held to be output service provider - payment of service tax liability of GTA service by appellants through CENVAT Credit is as per law. As, there is no demand of service tax against the appellants, the penalties imposed on them under Section 76 & 77 of the Finance Act, 1994, and under Rule 15(3) of the CENVAT Credit Rules, 2004 are set aside - Following decision of Shree Rajasthan Syntex Limited Vs. Commissioner of Central Excise, Jaipur [2011 (8) TMI 265 - CESTAT, NEW DELHI] - Decided in favour of assessee. - Appeal No. : ST/17-18/2011-SM - ORDER No. A/10974-10975/2014 - Dated:- 9-5 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Thus, demands of service tax for these periods were confirmed along with interest and penalties against the appellants. Appellant was also penalized for non / late filing of ST-3 Returns for the half years ending 31.03.2005, 30.09.2005, 31.03.2006 and 30.09.2006. 4. Shri Uday Joshi, Ld. Advocate for the appellant, argued that since the appellant was liable to pay service tax on GTA service in terms of Rule 2(d)(v) of the Service Tax Rules, 1994, they were deemed to be provider of GTA service by virtue of Rule 2(r) of the CENVAT Credit Rules, 2004, which clearly stipulates that provider of taxable service includes a person liable for paying service tax, and that the appellants have correctly paid service tax on the GTA service by utiliz ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es rendered by Goods Transport Agency through Cenvat Credit was appropriate. Similarly, in the case of CCE, Chandigarh v. Nahar Industries Enterprises Ltd. reported in [2007 (7) S.T.R. 26 (Tri. - Del.)] it was held that Cenvat credit can be utilised towards payment of Service Tax in respect of services received from Goods Transport Agency inasmuch as by a deemed fiction of law service recipient is held to be output service provider. The said order of the Hon ble Tribunal stands confirmed by the Hon ble Punjab and Haryana High Court as reported in 2011 (104) RLTONLINE 3 (P H) when the appeal filed by the revenue was rejected. We also take note of latest decision of the Tribunal in the case of M/s. Dhillon Kool Drinks Beverages Ltd. v. C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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. 7. In view of the above, I hold that the payment of service tax liability of GTA service by appellants through CENVAT Credit is as per law. As, there is no demand of service tax against the appellants, the penalties imposed on them under Section 76 77 of the Finance Act, 1994, and un ..... X X X X Extracts X X X X X X X X Extracts X X X X
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