TMI Blog2015 (11) TMI 840X X X X Extracts X X X X X X X X Extracts X X X X ..... ay service tax on the transportation of goods both inward and outward upto 31.12.2004. The liability was imposed only with effect from 1.1.2005. But, unfortunately, the first respondent/assessee paid service tax, even at a time when there was no liability on them. Since they made payment of tax under the impression that they were due to pay, they claimed CENVAT Credit to that extent. It is not the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nue. - C. M. A. No. 2939 of 2008 - - - Dated:- 4-9-2015 - V. Ramasubramanian And T. Mathivanan, JJ. For the Petitioner : Mr. A P Srinivas, Senior Panel Counsel For the Respondent : Mr. N Prasad JUDGMENT ( Judgment of the Court was delivered by V. Ramasubramanian, J. ) This appeal is by the Revenue under Section 35G of the Central Excise Act, 1944. 2. Heard Mr.A.P.Srini ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . 4. Upon gathering intelligence, a surprise inspection was conducted in January 2006 and it was found that the first respondent/assessee had used CENVAT credit as against the service tax paid by them prior to 1.1.2005. There was no liability for payment of service tax on inward transportation and outward transportation upto the stock point prior to 1.1.2005. 5. Therefore, the show cause not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ne was set aside by the first appellate authority. 8. But, the further appeal filed by the first respondent was allowed by CESTAT by an order dated 4.3.2008. Aggrieved by the said order, the Commissioner of Excise has come up with the above appeal. 9. It is an admitted fact that the first respondent/assessee was not liable to pay service tax on the transportation of goods both inward and out ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ption of the legal position, the assessee had paid the tax that he was not liable to pay and such assessee also happens to be an assessee entitled to certain credits such as CENVAT Credit, the availing of the said benefit cannot be termed as illegal. Therefore, we find no infirmity in the order of the Tribunal. The question of law is answered against the Revenue and the appeal is dismissed. No cos ..... X X X X Extracts X X X X X X X X Extracts X X X X
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