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2017 (10) TMI 1369

Credit account for payment of Service Tax on Goods Transport Agency service during the relevant period of February, 2005 to September, 2006? - Held that:- The SLP is pending against the decision of Punjab & Haryana High Court - the issue is required to be answered in favour of the assessee against the department - appeal dismissed. - D.B. Central/Excise Appeal No. 22 / 2011 And D.B. Central/Excise Appeal No. 27 / 2012 - 25-10-2017 - MR K. S. JHAVERI AND MR VIJAY KUMAR VYAS, JJ. For The Appellant(s) : Mr. Kinshuk Jain For The Respondent(s) : Mr. Anant Kasliwal, Mr. Mahesh Sharma Judgment 1. In both appeals common questions of law and facts are involved, hence, they are decided by this common judgment. 2. By way of these appeals, the appe .....

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33) S.T.R. 148 (Mad.) wherein it has been held as under:- 10. Going by the fiction under section 68(2) of the Finance Act, 1994 and CENVAT Credit Rules, 2004, deeming the payer of service tax as the person liable for paying the service tax in relation to such service, it is clear that while in the case of input service , any service used by the manufacturer, whether directly or indirectly, in or in relation to the manufacture of final products and clearance of final products from the place of removal, is considered as input service , in contrast to this, the Explanation given under output service in rule 2(1) of the CENVAT Credit Rules, thus deems that in the case of a person not proving taxable service or manufacture final products but lia .....

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y situated persons, namely, M/s. Alps Chemicals Pvt. Ltd. and others, as stated in Paragraph 9 of the memorandum of petition, the respondent authorities have permitted them to discharge the excise duty foregone from the Cenvat credit account instead of the cash payment. The petitioners have produced on record a copy of a communication dated 21-11-2014 of the Assistant Commissioner, Central Excise, Division-II, Ahmedabad addressed to the Deputy Development Commissioner in connection with the request for No Due Certificate for debonding of Exit out of 100% EOU Scheme by one M/s. Alps Chemicals Pvt. Ltd., which clearly shows that the said unit has been permitted to discharge excise duty for indigenously procured duty paid raw materials lying i .....

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e petitioner company is required to pay the excise duty foregone in cash instead of from the Cenvat credit account, it is likely to face liquidity crunch, thereby causing irreparable injury to the petitioners. In Ralli Engine Ltd. v. Union of India and others (supra), this court, in the facts of the said case has held that when different companies situated in different regions of the country, are granted a particular benefit, the petitioner therein which was situated in Gujarat, was also entitled to the similar treatment. As noted hereinabove, various assessees, including the assessees situated within the jurisdiction of Ahmedabad Commissionerate have been given benefit of paying the excise duty foregone from the Cenvat credit account. Unde .....

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al goods if such capital goods are removed as such; or d) an amount under sub rule (2) of rule 16 of Central Excise Rules, 2002; or e) service tax on any output service: S. 68 (1) and (2) of the Finance Act, 1994 read as follows: Sec. 68. Payment of Service Tax:- (1) Every person providing taxable service to any person shall pay service tax at the rate specified in section 66 in such manner and within such period as may be prescribed. (2) Notwithstanding anything contained in subsection (1), in respect of any taxable service notified by the Central Govt. in the Official Gazette, the service tax thereon shall paid by such person and in such manner as may be prescribed at the rate specified in section 66 and all the provisions of this chapter .....

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ated 6th May, 2010 and it held as follows: 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 utilization of Cenvat credit for the purpose of payment of service tax on the GTA services. 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 on any output service. In the present case also, the service tax was paid out of the Cenvat credit on GTA services and hence the Respondents were well within their right to utiliz .....

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