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TMI Blog2019 (5) TMI 157X X X X Extracts X X X X X X X X Extracts X X X X ..... nd also remand the case back to the Original Authority to the extent of denial of CENVAT credit on input services for verification of documents. 2. Briefly the facts of the present case are that the appellants are engaged in providing/receiving services in the category of Management and Maintenance of Repair Service, Renting of Immovable Property Service, Information Technology Software Service and Goods Transport Agency Service. They are availing CENVAT credit on capital goods, inputs and input services under the provisions of CENVAT Credit Rules, 2004. During the course of audit on the records of the appellants by the Department covering the period from December 2009 to July 2012, it was observed that the appellants have wrongly utilize ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted that this issue is no more res integra and has been settled in favour of the assessee. He also submitted that prior to insertion of Explanation to Rule 3(4) of CCR, 2004 i.e. prior to 01.07.2012 there was no restriction to utilize the CENVAT credit by the service recipient to discharge the Service Tax under RCM on the service imported as "deemed output service" and under Rule 5 of Taxation of Services (Provided from Outside India and Received in India) Rules, 2006. The appellant, in order to support his submission has relied upon the following decisions: * Plansee India High Performance Materials Pvt. Ltd. v. CCT, 2018 (10) TMI 324- CESTAT Bangalore. * Kansara Modler Ltd. v. CCE, Jaipur-II, 2013 (32) STR 209 (Tri. Del.). * UOI ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uducherry, 2017 (52) STR 63 (Tri. Chennai). * Anglo French Drugs & Industries Ltd. v. CCE, ST & Customs, Bangalore-II, 2017 (3) GSTL 147 (Tri. Bang.). 5. On the other hand, the Learned AR defended the impugned order. 6. After considering the submissions of both the parties and perusal of the material on record, I find that with regard to the first issue, the law is settled in favour of the appellant by various decisions relied upon by the appellant cited supra. This Tribunal in the case of Plansee India High Performance Materials Pvt. Ltd. (Supra) has considered the same issue and held that there is no bar for utilization of CENVAT credit for deemed service provider to pay Service Tax liability from CENVAT credit in terms of Section ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urt of Karnataka, has allowed the payment of service tax through CENVAT credit. It is pertinent to reproduce para 4 of the said order. 4. Heard both sides and have perused the records. The precise issue to be decided in this case is whether the CENVAT credit availed by the appellants can be utilized towards the payment of input service paid on the basis of reverse charge mechanism. We find that there are different views expressed by different Tribunals, however, the jurisdictional High Court of Karnataka in the case of M/s. Aravind Fashions (supra) observed that in the instant case that he is the recipient of service tax, the service provided is outside the country. In law, he is treated as service provider and he is levied tax. In other ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... utput services. Further, I find that the Explanation to Rule 3(4) of CCR, 2004 was inserted with effect from 01.07.2012 whereby restriction was imposed but in the present case, the period involved is April 2010 to July 2012 therefore for one month of July 2012, the appellant is liable to pay Service Tax in cash and is not entitled to utilize CENVAT credit for the month of July 2012, subject to this, the decisions relied upon by the appellant cited supra are squarely applicable in favour of the appellant and by following the ratio of the said decisions, I am of the considered view that the impugned order is not sustainable in law and therefore I set aside the impugned order by allowing the appeal of the appellant except for the month of July ..... X X X X Extracts X X X X X X X X Extracts X X X X
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