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TMI Blog2018 (8) TMI 1466X X X X Extracts X X X X X X X X Extracts X X X X ..... is higher under Section 76 of the Finance Act, 1994. 2. Briefly the facts of the present case are that the appellant has taken registration under the category of GTA services. During the course of audit on the records of the appellant by the IAP, Central Excise Hqrs. Office, Managlore, it was observed that during the period from January 2005 to June 2007, the appellant had utilized CENVAT credit for payment of service tax of Rs. 65,85,476/-, education cess of Rs. 1,43,842/- and Higher Education Cess of Rs. 4,861/- on Goods Transport Agency Service. The appellants are engaged in the manufacture of excisable goods and are availing input service credit but not providing any output service. Rule 3(4)(e) of the CENVAT Credit Rules, 2004 (CCR, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... CCR provides that CENVAT credit may be utilized for payment of service tax on any output service. Rule 3(4) does not qualify anywhere therein, that the term 'output service' is not including provider of taxable service who is a person liable for paying service tax. She further submitted that this issue is no longer res integra and stands settled by the Larger Bench decision of this Tribunal in the case of Panchmahal Steel Ltd. Vs. CCE&ST, Vadodara [2014(34) STR 351 (Tri. LB)] wherein the Larger Bench has considered decisions of various High Courts and held that credit availed for manufacturing activities could be used for payment of service tax on GTA service even if input services or capital goods were not utilized for providing taxable s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e has now been settled by the following decisions of the Hon'ble High Courts :- (a) CCE v. Nahar Industrial Enterprises Limited - 2012 (25) S.T.R. 129 (P & H). (b) CCE v. Auro Spinning Mills - 2012 (26) S.T.R. 413 (H.P.) = 2012 (279) E.L.T. 349 (H.P.) (c) CST v. Hero Honda Motors Limited - 2013 (29) S.T.R. 358 (Del.) 4. In the above decisions, the Hon'ble High Courts have held that there is no bar for payment of Service Tax from the Cenvat Account and there is no legal restriction for utilization of Cenvat credit for the purpose of payment of Service Tax on GTA services. The Hon'ble High Court of Punjab & Haryana, in the case of Nahar Industrial Enterprises Limited (supra), held as under :- "7. Learned counsel for the revenue ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pecified therein. Sub-rule (4) of Rule 3 of the said Rules provides that the Cenvat credit may be utilized for payment of various duties specified in clauses (a) to (e) thereof; clause (e) pertains to "Service Tax on any output service". A combined reading of these statutory provisions would, therefore, establish that though the assessee was liable to pay Service Tax on G.T.A. Service, it could have utilized Cenvat credit for the purpose of paying such duty. In view of the decisions of Punjab and Haryana High Court and Delhi High Court noted above, we do not find any error in the view of the Tribunal. Tax Appeal is, therefore, dismissed. 8. Further, we find that ratios of all other decisions cited supra are squarely applicable in the pres ..... X X X X Extracts X X X X X X X X Extracts X X X X
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