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TMI Blog2015 (8) TMI 1313X X X X Extracts X X X X X X X X Extracts X X X X ..... ngaged in the manufacture of printing ink, adhesive etc. falling under Tariff Heading No.3215 and 3506 of the first schedule to the Central Excise Tariff Act, 1985. The appellant availed Cenvat Credit on GTA service for inward as well as outward transportation of goods and also discharged service tax liability thereon in the capacity of a person liable to pay service tax in terms of the provisions of section 68 (2) of the Finance Act 1994 read with rule 2 (1) (d) (v) of the Service Tax Rules 1994 (Reverse charge mechanism). For payment of service tax, the appellant utilized the amount available in the cenvat account. Payment of tax on such GTA service through the cenvat account was objected by the Service Tax Department.&n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the ld. DR appearing for the respondent submits that since the appellant had deposited the service tax attributable to the GTA service after the due date through TR-6 challan, as per the provisions of section 75 of the Finance Act 1994 the interest liability is automatic and the appellant is statutorily required to pay the interest for delayed payment of service tax. 6. I have heard the ld. Counsel for both sides and perused the records. 7. It is an admitted fact on record that the appellant had initially paid from the cenvat account for payment of service tax attributable to the GTA service for movement of both inward and outward transportation of goods. However, since the Department insisted for making the payment of s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... resent dispute is no more resintegra in view of the judgment of Hon'ble Punjab and Haryana High Court in the case of Nahar Industrial Enterprises Ltd. (supra) wherein the Hon'ble High Court have held as follows:- "7. Learned counsel for the revenue has contended that the respondents cannot pay the service tax from the Cenvat credit availed by them. But this argument has no force, because a perusal of para 2.4.2 of CBEC's Excise Manual of Supplementary Instructions shows that there is no legal bar to the utilisation of Cenvat credit for the purpose of payment of service tax on the GTA services. 8. Apart from the above, even as per Rule 3(4)(e) of the Cenvat Credit Rules, 2004, the Cenvat credit may be utilized for payment of service tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vice Tax Rules, 1994, Section 75 of the Finance Act, 1994 cannot be invoked, justifying imposition of interest on the appellant in view of the fact that there was no delay in payment of service tax. As an abundant precaution, the appellant decided in reversing the cenvat credit and to pay the service tax through PLA. The payment of service tax through PLA is not the determining factor in the present case for computation of the period of delay, as because, the payment of service tax has been made within the stipulated time frame by debiting the cenvat account. Therefore, the impugned order confirming the interest liability on the ground of delayed payment of service tax is set aside. The appeal is allowed in favour of the a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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