TMI Blog2008 (11) TMI 56X X X X Extracts X X X X X X X X Extracts X X X X ..... nt [Order per Jyoti Balasundaram, Vice-President] - The brief facts of the case are that, the respondents herein were registered in the category of 'Transport of goods by Road Service' ('GTA Service' in short) as person liable to pay Service Tax under Section 68 of the Finance Act, 1994. On scrutiny of ST-3 Returns filed for the half year ending March, 2005 and September, 2005, it was observed that 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, whic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gh Court. However, this by itself is not sufficient to hold that the Commissioner (Appeals) has committed any error in following the precedent on the identical issue of the same assessee. In the impugned order, the Commissioner (Appeals) has reproduced the relevant portion from the Tribunal's judgment, which is reproduced as under for the better understanding of the issue and the dispute: "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 ground ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce Tax and provider and taxable service include a person liable for paying Service Tax. Further, I find that as per CBEC Excise Manual of supplementary instructions where certain restrictions were imposed for payment of Cenvat credit. Para 24.2 is reproduced below: Utilisation of credit "The Cenvat credit may be utilised for payment of:- (a) any duty of excise on any final products; or (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 se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce tax on any output service. Further, the credit of any other duty cannot be utilized for the payment of duty levied under clause 85 of Finance Bill 2005 (refer Notification No. 13/2005-CE(NT) dated 1-3-2005). There is no restriction on utilization of credit of duties other than mentioned above." 4. As per the Cenvat Credit Rules and as per the Manual, there is no restriction for utilization of Cenvat credit by the manufacturing unit towards payment of Service Tax as service tax provider. In these circumstances, I find no infirmity in the impugned order, the appeal is dismissed." 3. In the light of the above decision of the Tribunal, I hold that there is no warrant to interfere with the present impugned order and accordingly uphold ..... X X X X Extracts X X X X X X X X Extracts X X X X
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