2008 (1) TMI 227

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..... ture sugar and molasses and operate under Cenvat Scheme. They pay service tax under GTA service on freight for transport of materials into the factory and for transport of final products to their buyers. They utilized Cenvat credit for payment of service tax freight incurred for transport of materials into the factory during the period 1-1-05 to 30-9-05. The original authority demanded service tax .....

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..... Pvt. Ltd. v. CCE, Salem reported in 2007 (8) S.T.R 186 (Tri.-Chen.) and India Cements Ltd. v. CCE, Salem reported in 2007 (7) S.T.R. 569 (Tri.-Chen.), wherein the Tribunal, relying on the Explanation to Rule 2(p) of C.C.R. had decided that by virtue of the Explanation the GTA service for which the assessee paid service tax was "output service". Accordingly, it was held that Cenvat credit could no .....

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..... service tax shall be deemed to be the output service. In terms of the Explanation which existed on the statute during the material time, the inward transport is a GTA service and an output service. For payment of service tax oil this output service, Cenvat credit earned by the assessee can be utilized validly. This is also the ratio of the decisions cited by the Consultant. That is what precisely .....

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