9911796707
TMI Blog2008 (11) TMI 56X X X X Extracts X X X X X X X X Extracts X X X X ..... they had paid Service Tax of Rs. 2,39,041/- from Cenvat credit account maintained for central excise purpose for payment of duty on final products. The assessee was working under two capacities one Manufacturer and the other Service Tax assessee [Demand Service Tax assessee under Section 68(2)]. The inputs/input services/capital goods, which are used for manufacture of final product, were held as inputs/input services/ capital goods for providing outward services in view of the definition thereof under Rule 2 of the Cenvat Credit Rules, 2004. The Department was, therefore, of the view that the Service Tax paid by the assessee on GTA Service from the Cenvat credit account was not proper and, therefore, a show cause notice dated 16.03. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e: "2. The respondents are engaged in the activity of manufacture as well as they are output service providers. In the impugned order, the Commissioner (Appeals) held that the respondents are entitled for Cenvat credit of manufacturing activity for utilization towards payment of Service Tax. The Revenue is challenging these findings on the following grounds: (i) The Cenvat Credit Rules, 2004 provide that the output service provider is eligible to take credit of service tax paid on input/capital goods used in providing service. In this case the actual service provider is the transporter and the party is treated as the service provider for the limited purpose of discharging the Service Tax liability under Section 68(2) of the Finance Act, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (b) an amount equal to Cenvat credit taken on inputs if such inputs are removed as such or after being partially processed; or (c) an amount equal to the Cenvat credit taken on capital 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. 24.2 Restrictions on utilization of credit. There are certain restrictions on utilization of Cenvat credit of different rules. The credit of AED (TTA), NCCD, Additional Duty of Excise on Tea Education Cess and additional duty of excise levied under clause 85 of Finance Act, 2005 can only be utilized only for the payment of such duties. Vide section 88 of Finance (No. 2) Act, 2004, it has ..... X X X X Extracts X X X X X X X X Extracts X X X X
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