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2015 (8) TMI 1313 - CESTAT NEW DELHI

2015 (8) TMI 1313 - CESTAT NEW DELHI - TMI - Demand of interest section 75 of the Finance Act, 1994 CENVAT credit GTA services manufacture of printing ink, adhesive etc. - section 68(2) of the Finance Act 1994 read with rule 2(1)(d)(v) of the Service Tax Rules 1994 reverse charge mechanism utilization of CENVAT credit for payment under reverse charge subsequent to rejection, payment made in cash Held that: - Rule 3(4)(e) of Cenvat Credit Rules, 2004 the cenvat credit may be utili .....

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of service tax has been made within the stipulated time frame by debiting the cenvat account appeal disposed off decided in favor of appellant. - ST/1399/2011 ST. [SM] - FINAL ORDER NO. 54070/2015 - Dated:- 10-8-2015 - Mr. S.K. Mohanty, Member (Judicial) Present for the Appellant : Shri. Arvind Arora, Advocate Present for the Respondent : Shri R.K. Mishra, D.R. ORDER This appeal is directed against the impugned order dated 30th May 2011 wherein the Commissioner (Appeals) has upheld the dema .....

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iability 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. Subsequently, the appellant paid the amount by cash. The adjudication or .....

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statute book only w.e.f. 01.03.2008. He further submits that since Rule 3 (4) clearly provides that cenvat credit may be utilized for payment of service tax on any output service, denial of utilization of GTA service in this case is not proper, since there is no stipulation/prohibitions contained in the said sub-rule (4) of Rule 3 of Cenvat Credit Rules. To justify his stand that GTA service tax liability can be discharged by debiting the cenvat account, the ld. Advocate has relied on the judgm .....

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he 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 .....

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mended w.e.f. 01.03.2008 vide Notification No.10 of 2008/C.E. - (N.T.) dated 01.03.2008. The effect of the amendment was that taxable service referred to in clause (zze) of clause 105 of Section 65 of the Finance Act i.e. the GTA service was excluded from the purview of output service. Since the period involved in the present case is from January, 2005 to August, 2006, the said amended provisions of output service will have no application and as per the unamended provisions effective upto 28th F .....

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e.f. 01.03.2008. The issue arising out of the present 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 Supplementar .....

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the purpose of payment of service tax. The Commissioner (Appeals) as well as the Tribunal have rightly held that the respondents were entitled to pay the service tax from the Cenvat credit. 10. In view of the above, the question of law posed in these appeals is answered in favour of the assessee and against the revenue. We find no merit in these appeals and the same are accordingly dismissed. 9. Further the issue regarding utilization of cenvat credit has also been settled by the Hon ble Himacha .....

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