9911796707
TMI Blog2015 (12) TMI 1452X X X X Extracts X X X X X X X X Extracts X X X X ..... e provisions of section 66A of the Finance Act 1994 as a recipient of Services. Appellant discharged the service tax by debiting the same through Cenvat Account. It is the case of the department that appellant should have paid the service tax liability in cash and could not have utilized the Cenvat Credit. Both the lower authorities have held that appellant has to pay the amount in cash coming to the said a conclusion demand was confirmed along with interest and penalties were imposed. 3. Learned Counsel would take us through the provisions of Cenvat Credit Rules more specifically Rule 3 (4) (e) and submit that Cenvat credit may be utilized for payment of service tax of any output service. She would submit that the appellant has done preci ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... provisions of rule to 3 (4) of the Cenvat Credit Rules 2004. Plain reading of the said sub-Rule 4 of Rule 3 indicates that Cenvat Credit may be utilized for the payment of service tax on any output service. We find from the provisions of Rule 2(r), which provides that "provider of taxable service" includes person who liable for paying service tax; Rule 2(p) provides that "output service" means taxable service provided by the provider of taxable service. Reading holistically, if the appellant is required to discharge the service tax under reverse charge mechanism, then it has to be conclude that he is provider of taxable service who provides output service. In our view, the lower authorities were incorrect in interpretation of the provision ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (q) "person liable for paying Service Tax" has the meaning as assigned to it in clause (d) of Sub-Rule(l) of Rule 2, of the Service Tax Rules, 1994. (r) "provider of taxable service" includes a person liable for paying Service Tax." 5.2 Thus, the only change in the legal provision is the omission of Explanation under Rule 2(p). An Explanation only clarifies the position. By omission of the explanation, the meaning does not undergo any change. Therefore, both prior to 19-4-2006 as also w.e.f. 19-4-2006, the meaning of the expression 'output service', 'provider of taxable service' and 'person liable for paying Service Tax' remain the same. Since in the case of Insurance Auxiliary Service, the liability to pay Serv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... service provider under Rule 2(p) of the Cenvat Credit Rules. Revenue is also relying on Rule 5 of Taxation of Services (Provided from Outside India and Received in India) Rules. We find that Rule 5 refers to availing of Cenvat credit and not to utilization of credit. We are therefore of the view that the finding of the Commissioner not treating the appellant as output service provider, is not correct and accordingly we set aside the impugned order and allow the appeal." 5.3 In view of the above decisions of the various High Courts, the decisions of the Tribunal relied upon by the Revenue become irrelevant. Accordingly, we hold that the appellants in present appeals were entitled to utilize Cenvat Credit of the Service Tax paid on various ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
