TMI Blog2018 (1) TMI 1131X X X X Extracts X X X X X X X X Extracts X X X X ..... ght in Rule 2 (p) of the Rules vide Cenvat Credit (Amendment) Rules, 2008 w.e.f. 1.3.2008 appellant cannot utilize cenvat credit for discharging tax liability on the said GTA service for outward transportation. Cenvat credit so availed will then will have to be paid back along with appropriate interest liability thereof. For this limited purpose, we remand the matter to the adjudicating authority, only for the purpose of calculating the amount required to be paid back and the interest liability thereon for the period 1.3.2008 to September 2008. Penalty - Held that: - the issue per se was mired in confusion during the disputed period - penalty cannot be imposed. Appeal allowed in part and part matter on remand. - ST/175/2010 - 42429/2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er of taxable service in Rule (r) of the Rules upto 28.02.2008, appellant should have been construed to be the output service providers and accordingly credit availed for various input services was correctly utilized in terms of Rule 3 (4) of the Rules. He further concedes that Rule 2(q) was amended on 01.03.2008 wherein specific exclusion for taxable service covered by Section 65 (105) (zzp) of the Finance Act, 1994 was brought in Rule 2 (p) of the CCR 2004. Hence from 1.3.2008, they would not be entitled to utilize such cenvat credit for discharge of tax liability on GTA for outward transportation, which liability they concede. 3. Ld. consultant relies upon the Larger Bench ruling of the CESTAT in Pancmahal Steel Ltd. Vs CCE Vadodar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... period beyond 18.04.2006, the appellant therein was not entitled to utilize cenvat credit for payment of service tax on GTA service. Ld. AR also draws attention to Tribunal's decision in the case of Iswari Spinning Mills and Others in Final Order No-226-275/2011 dt. 04.02.2011 which has held that assessees therein were not entitled to utilize cenvat credit for payment of service tax on GTA service beyond 18.04.2006. Ld. A.R further submits that the decision in the case of Iswari Spinning Mills (supra) was confirmed by Hon'ble High Court of Madras on 1 1.12.2013 as reported in 2014 (35) STR J134 (Mad.)- 6. Heard both sides and have gone through the facts. The case laws relied upon by Ld. A.R, in the first place, are S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nsignor, the tax liability on GTA services availed for outward transportation. 8. However, for the period 1.3.2008 to September 2008, i.e., the remaining part of the disputed period, by virtue of the amendment brought in Rule 2 (p) of the Rules vide Cenvat Credit (Amendment) Rules, 2008 w.e.f. 1.3.2008 appellant cannot utilize cenvat credit for discharging tax liability on the said G TA service for outward transportation. Cenvat credit so availed will then will have to be paid back along with appropriate interest liability thereof. For this limited purpose, we remand the matter to the adjudicating authority, only for the purpose of calculating the amount required to be paid back and the interest liability thereon for the period 1.3.2008 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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